Earnings Recap From The Past Few Weeks
Sea Limited, Apple, Shopify, Roku, PayPal, Airbnb, SoFi, Block & More.
Hey reader! 📰
If you’re new here, welcome and if not, welcome back! If you haven’t joined the 775 subscribed members yet and want an earnings summary each Saturday during each earnings season, you can sign up below for FREE (thank you to my paid subscribers!). And consider subscribing to the YouTube channel.
A friendly reminder that the stock price reaction after earnings might have nothing to do with how well/bad the company performed during the quarter.
Try Seeking Alpha’s Premium Membership HERE
Sea Limited
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 GAAP EPS of -$0.26 misses by $0.26.
Revenue of $3.3B (+3.1% Y/Y) beats by $90M.
Total gross profit was $1.4B, up 17.4% year-on-year.
Total net loss was $144M, as compared to total net loss of $569.3M for the third quarter of 2022.
Total adjusted EBITDA was $35.3M, as compared to a loss of $357.7M for the third quarter of 2022.
As of September 30, 2023, cash, cash equivalents, short-term and other treasury investments were $7.9B, representing a net increase of $274M from June 30, 2023.
Palo Alto Networks
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q1 Non-GAAP EPS of $1.38 beats by $0.22.
Revenue of $1.9B (+21.8% Y/Y) beats by $60M.
Remaining performance obligation grew 26% year over year to $10.4 billion.
Fiscal first quarter Non-GAAP operating margin and Non-GAAP net income per share ahead of guidance, and raising FY'24 guidance on both metrics.
For the fiscal second quarter 2024:
Total billings in the range of $2.335 billion to $2.385 billion, representing year-over-year growth of between 15% and 18%.
Total revenue in the range of $1.955 billion to $1.985 billion, vs. consensus of $1.97B, representing year-over-year growth of between 18% and 20%.
Diluted non-GAAP net income per share in the range of $1.29 to $1.31, vs. consensus of $1.25, using 339 million to 342 million shares outstanding.
For the fiscal year 2024:
Total billings in the range of $10.7 billion to $10.8 billion, representing year-over-year growth of between 16% and 17%.
Total revenue in the range of $8.15 billion to $8.20 billion, vs. consensus of $8.19B, representing year-over-year growth of between 18% and 19%.
Non-GAAP operating margin in the range of 26% to 26.5%.
Diluted non-GAAP net income per share in the range of $5.40 to $5.53, vs. consensus of $5.34, using 338 million to 343 million shares outstanding.
Adjusted free cash flow margin in the range of 37% to 38%.
Alibaba
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q2 Non-GAAP EPADS of $2.14 beats by $0.05.
Revenue of $30.81B (+9% Y/Y) misses by $230M.
Net cash provided by operating activities was $6,748 million, an increase of 4% compared to the same quarter of 2022.
Free cash flow, was $6,198 million, an increase of 27% compared to the same quarter of 2022.
We are pleased to announce our first annual dividend distribution for fiscal year 2023, with an aggregate amount of approximately US$2.5 billion, as part of our continued efforts to enhance shareholders’ return in addition to the ongoing share repurchase program.
Block
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 GAAP EPS of -$0.05 beats by $0.06.
Revenue of $5.62B (+24.3% Y/Y) beats by $190M.
Transaction-based revenue was $1.66 billion in the third quarter of 2023, up 9% year over year
In the third quarter of 2023, Cash App generated $3.58 billion of revenue
It announced a $1B stock buyback program, underscoring its progress in improving its profitability.
4 Stocks to Buy in November
Apple
For the transcript and press release click HERE
Q4 GAAP EPS of $1.46 beats by $0.07.
Revenue of $89.49B (-0.7% Y/Y) in-line.
Net sales by category:
iPhone revenue: $43.8B (2.7 Y/Y %)
Mac revenue: $7.61B (-33.9 Y/Y %)
iPad revenue: $6.44B (-10.2 Y/Y %)
Wearables, home and accessories: $9.32B (-3.4 Y/Y %)
Service revenue: $22.31B (16.3 Y/Y %);
Palantir
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 Non-GAAP EPS of $0.07 beats by $0.01.
Revenue of $558M (+16.8% Y/Y) beats by $2.08M.
Cash from operations of $133 million, representing a 24% margin.
Adjusted free cash flow of $141 million, representing a 25% margin.
Cash, cash equivalents, and short-term US treasury securities of $3.3 billion.
For Q4 2023:
Revenue of between $599 - $603 million vs. the consensus of $599.26M.
Adjusted income from operations of $184 - $188 million.
For full-year 2023:
Raising our revenue guidance to between $2.216 - $2.220 billion vs. the consensus of $2.21B.
Raising our adjusted income from operations guidance to between $607 - $611 million.
Continue to expect GAAP net income in each quarter of this year.
Shopify
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 Non-GAAP EPS of $0.24 beats by $0.10.
Revenue of $1.71B (+24.8% Y/Y) beats by $40M.
Gross Merchandise Volume ("GMV") increased 22% to $56.2 billion, an increase of $10.0 billion over the third quarter of 2022.
Merchant Solutions revenue increased 24% to $1.2 billion compared to the prior year, driven primarily by the growth of GMV and Shopify Payments.
Gross Payments Volume ("GPV") grew to $32.8 billion, representing 58% of GMV processed in the quarter, versus $25.0 billion, or 54%, for the third quarter of 2022.
Subscription Solutions revenue increased 29% to $486 million compared to the prior year, driven primarily by more merchants joining the platform and the pricing changes that went into effect for existing merchants on our Standard subscription plans.
Monthly Recurring Revenue ("MRR") as of September 30, 2023 increased 32% to $141 million compared to the prior year, driven by continued growth across all of our subscription plans. Shopify Plus contributed $44 million, or 31%, of MRR compared with 33% of MRR as of September 30, 2022.
Airbnb
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 GAAP EPS of $6.63 beats by $4.53.
Q3 net income of $4.4 billion included a one-time income tax benefit from the release of a valuation allowance (“VA”) of $2.8 billion on certain deferred tax assets. Excluding this, Adjusted Net Income was $1.6 billion.
Net income margin was 129% and Adjusted Net Income Margin was 47%.
Revenue of $3.4B (+18.1% Y/Y) beats by $30M.
Q3 Adjusted EBITDA of $1.8 billion represented a 26% increase from Q3 2022, demonstrating the continued strength of the business and discipline in managing our cost structure.
Generated $1.3 billion of both net cash provided by operating activities and FCF in Q3. Our trailing twelve months FCF was a record $4.2 billion.
Strong growth in Nights and Experiences Booked and a modest increase in ADR drove $18.3 billion of GBV in Q3 2023.
Outlook: For Q4 2023, we expect to deliver revenue of $2.13 billion to $2.17 billion. This represents year-over-year growth of between 12% and 14%, which is relatively stable growth compared to Q3 2023 excluding the impact of FX.
Roku
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 GAAP EPS of -$2.33 misses by $0.23.
Revenue of $912M (+19.8% Y/Y) beats by $56.34M.
Platform revenue was $787 million, up 18% YoY
Gross profit was $369 million, up 3% YoY; up 22% YoY excluding restructuring charges1
Active Accounts were 75.8 million, a net increase of 2.3 million Active Accounts from Q2 2023
Streaming Hours were 26.7 billion, up 4.9 billion hours YoY
Average Revenue Per User (ARPU) was $41.03 (trailing 12-month basis), down 7% YoY
PayPal
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 Non-GAAP EPS of $1.30 beats by $0.07.
Revenue of $7.4B (+8.0% Y/Y) beats by $20M.
Total payment volume (TPV) of $387.7 billion, growing 15% and 13% on an FX-neutral (FXN) basis
GAAP operating income of $1.2 billion, growing 4%; non-GAAP operating income of $1.6 billion, growing 8% ◦ GAAP EPS of $0.93 compared to $1.15 in Q3'22
Operating cash flow of $1.3 billion with free cash flow of $1.1 billion
Appointing Jamie Miller Chief Financial Officer (CFO), effective November 6
Q4'23 Guidance
• Net revenues expected to grow ~6%-7% on a spot basis and ~7%-8% FXN, vs. consensus of $7.98B
GAAP earnings per diluted share expected to be ~$1.20
FY'23 Guidance
GAAP earnings per diluted share now expected to be ~$3.75, compared to $2.09 in FY’22
Non-GAAP earnings per diluted share now expected to grow ~21% to ~$4.98, compared to $4.13 in FY’22 and vs. consensus of $4.95
AMD
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 Non-GAAP EPS of $0.70 beats by $0.02.
Revenue of $5.8B (+4.1% Y/Y) beats by $110M.
Data Center segment revenue was $1.6 billion, flat year-over-year, as growth in 4th Gen AMD EPYC™ CPU sales was offset by a decline in adaptive System-on-Chip (SoC) data center products.
Client segment revenue was $1.5 billion, up 42% year-over-year driven primarily by higher Ryzen mobile processor sales.
Embedded segment revenue was $1.2 billion, down 5% year-over-year primarily due to a decrease in revenue in the communications market.
Gaming segment revenue was $1.5 billion, down 8% year-over-year, primarily due to a decline in semi-custom revenue, partially offset by an increase in AMD Radeon™ GPU sales.
For the fourth quarter of 2023, AMD expects revenue to be approximately $6.1 billion
Pinterest
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 GAAP EPS of $0.01 beats by $0.04.
Revenue of $763.2M (+11.5% Y/Y) beats by $19.87M.
Global Monthly Active Users increased 8% year over year to 482 million.
Guidance: For Q4 2023, we expect revenue to grow in the 11-13% range year over year.
SoFi
For the transcript and press release click HERE
I’ve also covered it on my channel in detail.
Q3 Non-GAAP EPS of -$0.03 beats by $0.06.
Revenue of $537.2M (+26.7% Y/Y) beats by $21.64M.
GAAP Net Revenue of $537 Million Up 27%; $531 Million Adjusted Net Revenue Up 27% Year-over-Year
New Member Adds of Over 717,000; Quarter-End Total Members Up 47% Year-over-Year to Over 6.9 Million
New Product Adds of Nearly 1,047,000; Quarter-End Total Products Up 45% Year-over-Year to Over 10.4 Million
Total Deposit Growth of $2.9 Billion, Up 23% During the Third Quarter to $15.7 Billion
$68 Million Growth in Tangible Book Value, $171 Million on a Trailing 12 Month Basis
For the full year 2023, management expects adjusted net revenue of $2.045 to $2.065 billion
Full-year adjusted EBITDA of $386 to $396 million, up from its prior guidance of $333 to $343 million, representing a 48% incremental adjusted EBITDA margin and a range of 18.9% to 19.2% adjusted EBITDA margin.
