Category: Earnings

June 6, 2019 Off

Zoom outperforms in first-ever earnings report

By Jill T Frey

2019 is a great year for Zoom (Nasdaq: ZM). The company outperformed analyst expectations with the release of its first earnings report on Thursday.

The profitable video communications business, which went public this April in one of the year’s most successful initial public offerings, posted revenues of $122 million for the three months ended April 30, 2019, representing a year-over-year increase of 109%.

The Zoom stock is rising in after-hours trading following the news. Zoom closed up 2% Thursday at just over $79 per share. The stock has been trading at more than double its initial offering price in the two months following its IPO.

“In our first quarter as a public company, strong execution and expanding adoption of Zoom’s video-first unified communications platform drove total revenue growth of 103% year-over-year,” Zoom founder and chief executive officer Eric Yuan said in a statement. “Delivering happiness to our customers is our … Read the rest

May 31, 2019 Off

Slack narrows losses, displays healthy revenue growth

By Jill T Frey

Workplace messaging powerhouse Slack filed an amended S-1 with the U.S. Securities and Exchange Commission on Friday weeks ahead of a direct listing expected June 20.

In the document, Slack included an updated look at its path to profitability, posting first-quarter revenues of $134.8 million on losses of $31.8 million. Slack’s Q1 revenues represent a 67% increase from the same period last year when the company lost $24.8 million on $80.9 million in revenue.

For the fiscal year ending January 31, 2019, the company reported losses of $138.9 million on revenue of $400.6 million. That’s compared to a loss of $140.1 million on revenue of $220.5 million the year prior.

Slack is in the process of completing the final steps necessary for its direct listing on The New York Stock Exchange, where it will trade under the ticker symbol “WORK.” A direct listing is an alternative approach to the stock … Read the rest

May 30, 2019 Off

Uber Eats, micromobility services are growing faster than Uber’s core ride-hailing business

By Jill T Frey

Uber’s ride-hailing business is growing more slowly than its newer bets. In Uber’s Q1 2019 earnings, the company reported gross bookings growth of 230% for its other bets, while ridesharing grew just 22% compared to the same quarter last year.

Gross bookings are the revenue earned minus things like taxes, tolls, fees, wages paid to drivers, restaurants and so forth.

Other bets, with gross bookings of $132 million for Q1 2019, includes freight and new mobility, which entails bikes and scooters. Uber did not break out specifics for new mobility, but Uber CEO Dara Khosrowshahi said on an investor conference call that gross bookings for new mobility “grew strong quarter over quarter.”

Meanwhile, Eats continues to be a revenue driver for Uber, with gross bookings growth of 108% to $3.07 billion.

Slowing growth of Uber’s core business is to be expected. At TC Disrupt last year, Khosrowshahi said ride-hailing will Read the rest

May 30, 2019 Off

Uber lost another $1B last quarter

By Jill T Frey

Uber posted losses of $1 billion on revenue of $3.1 billion for the first quarter of 2019 in what was the company’s first earnings report as a public company. Gross bookings rose 34% to $14.6 billion in the same time period, as Uber Eats continued to show notable growth.

Amid both positive and negative stock predictions, NYSE: UBER fluctuated ahead of the news, ultimately closing down .25% at $39.90 per share.

Analysts anticipated an adjusted net loss per share of 76 cents on earnings of about $3.1 billion, according to FactSet. Uber, in its IPO paperwork, said it expected first-quarter losses to fall between $1 billion and $1.1 billion.

“Earlier this month we took the important step of becoming a public company, and we are now focused on executing our strategy to become a one-stop shop for local transportation and commerce,” Uber chief Dara Khosrowshahi said in a statement. “In … Read the rest

May 20, 2019 Off

When will customers start buying all those AI chips?

By Jill T Frey

It’s the best and worst time to be in semiconductors right now. Silicon Valley investors are once again owning up to their namesakes and taking a deep interest in next-generation silicon, with leading lights like Graphcore in the United Kingdom hitting unicorn status while weirdly named and stealthy startups like Groq in the Bay Area grow up.

Growth in chips capable of processing artificial intelligence workflows is expected to swell phenomenally over the coming years. As Asa Fitch at the Wall Street Journal noted yesterday, “Demand for chips specialized for AI is growing at such a pace the industry can barely keep up. Sales of such chips are expected to double this year to around $8 billion and reach more than $34 billion by 2023, according to Gartner projections.”

Yet, all those rosy projections don’t suddenly make the financial results of companies like Nvidia any easier to swallow. The … Read the rest

May 20, 2019 Off

Smart TVs add fuel to Xiaomi’s Q1 earnings

By Jill T Frey

Chinese smartphone company Xiaomi just released its first quarterly results since announcing its $1.48 billion pledge to focus on smartphones and “AIoT,” an acronym for Internet of Things powered by artificial intelligence.

Xiaomi’s adjusted net profit for the first quarter increased 22.4% year-over-year to 2.1 billion yuan ($300 million), while total revenue climbed 27.2% to 43.8 billion yuan ($6.33 billion).

Sales in India, where Xiaomi handsets dominate, as well as other countries outside China, continued to be a bright spot for the company. International markets brought in 38% of its total revenue over the first quarter, representing a 35% increase. Xiaomi’s overseas momentum came amid a global slowdown in the smartphone sector and at a time its rival Huawei copes with a technology ban that threatens to hobble international sales.

Smartphones remained as Xiaomi’s biggest revenue driver, though the segment had shrunk from 67.5% of total revenue in Q1 … Read the rest

May 17, 2019 Off

Baidu, China’s answer to Google, reports first quarterly loss since 2005

By Jill T Frey

Baidu, heralded as the Google of China, felt the heat from its continued spending on artificial intelligence and other next-gen technologies that have yet to reach the mass market as it unveiled troubled first-quarter financials on Thursday.

The company logged a net loss attributable to shareholders of $49 million in the quarter ended March 31, marking the first quarterly loss since it went public in 2005. That compares to net income of 6.69 billion yuan ($970 million) a year before. Content costs surged 47% to $917 million on account of continued investments in Baidu’s Netflix-like video streamer iQiyi, while research and development expenses stood at $621 million, up 26%.

In a letter to staff today, founder and CEO Robin Li acknowledged that Baidu faces a “grim situation” and reiterated the firm’s strategy to “invest in return for growth.”

Baidu remains as the largest search service in China, with a 67% … Read the rest

May 16, 2019 Off

Pinterest delivers first earnings report as a public company

By Jill T Frey

Pinterest (NYSE: PINS) shared lukewarm first-quarter financials on Thursday after the closing bell in what was its first earnings report as a public company.

The company, led by co-founder and chief executive officer Ben Silbermann, posted revenues of $202 million on losses of $41.4 million for the three months ending March 31, 2019. This surpassed Wall Street’s revenue estimates of about $200 million and represented significant growth from last year’s Q1 revenues of $131 million. Losses, however, came in roughly three times higher than estimates at 32 cents per share.

The digital pinboard went public in April, rising 25% during its first day trading on the New York Stock Exchange. Pinterest’s public market performance has continued to stay in the green, closing up about 8% Thursday at nearly $31 per share for a market cap of $16.7 billion.

“The IPO was a significant milestone, but our focus at Pinterest hasn’t … Read the rest

May 15, 2019 Off

Tencent’s mixed bag for Q1: record profit despite weakest revenue growth yet

By Jill T Frey

Tencent, Asia’s largest tech firm, had a horrific 2018 on account of a country-wide freeze on new game monetization in China, but there’s evidence it has turned the corner.

The company’s new mobile gaming hit Game for Peace has yet to kickstart the company’s recovery from a few weakening quarters, but its booming financial technology division has helped to neutralize the brunt to some degree.

The Chinese social media and gaming titan ended the first quarter of 2019 with its slowest revenue growth since going public to $12.69 billion, a 16 percent increase year-over-year. On the other side, net profit came in at a record $4 billion, beating analyst estimates in the process.

Though most famous for WeChat, video games have fuelled Tencent’s earnings and stock prices for many years. The lucrative segment took a hit during a prolonged licensing freeze last year that prevented Tencent from monetizing a few … Read the rest

May 7, 2019 Off

Lyft lost $1.14B in Q1 2019 on $776M in revenue

By Jill T Frey

In its first-ever earnings report as a public company, Lyft (Nasdaq: LYFT) failed to display progress toward profitability.

The ride-hailing business, which raised $2 billion in a March initial public offering, posted first-quarter revenues of $776 million on losses of $1.14 billion, including $894 million of stock-based compensation and related payroll tax expenses. The company’s revenues surpassed Wall Street estimates of $740 million while losses came in much higher as a result of IPO-related expenses.

“The first quarter was a strong start to an important year, our first as a public company,” Lyft co-founder and chief executive officer Logan Green said in a statement. “Our performance was driven by the increased demand for our network and multi-modal platform, as Active Riders grew 46 percent and revenue grew 95 percent year-over-year. Transportation is one of the largest segments of our economy and we are still in the very early stages … Read the rest