What Happened This Week In The Stock Market?
Going over the market moves during the week of 2/14/2022
Hey reader!
If you’re new here, welcome and if not, welcome back. Most of you subscribed to get an earnings summary and that is what you will get, just a little bit shorter. This will also continue when earnings season is over and will cover the big moves the market or specific companies have made during the week.
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Last week I covered Peloton, Affirm, and Disney’s earnings report as well as talked about the Russia/Ukraine/US tango. You can check that out here.
What happened this week?
Roblox video
In this video, I will be talking about Roblox's Q4 earnings, why the stock crashed, and why you should see this as an opportunity.
Management reiterated its long-term goal of connecting 1 billion people. There's still a long way to go, but I can see this happening eventually. More and more big companies are turning to these platforms to advertise and engage with users. Recently, Nascar, Vans, Ralph Lauren, and Nike have partnered up with the platform.
Revenue for the quarter increases 83% YOY to $568.8 million. Bookings increased 20% to $770.1 million, and average daily active users (DAUs) was 49.5 million, up 33% YOY.
Roblox developer community earnings were $538.3 million in 2021, growing nearly five times or 119% compounded over the past two years. This is a crucial metric, as some of these payouts are engagement-based ones, which is motivating existing developers and attracting new ones.
Roblox ended the month of January with 54.7 million daily active users (DAUs), an increase of 32% year over year (YOY). Users spent 4.2 billion hours on the platform during that month, an increase of 26% YOY. Estimated bookings for January were between $220 million and $223 million, up 2% to 3% YOY. Average booking per daily active user (ABPDAU) was between $4.02 and $4.08, down 22% to 23% YOY, driven primarily by comparisons to peak COVID periods.
No guidance was given, but management expects exit growth rates this year to be a good indicator of 2023 growth.
Airbnb video
In this video, I will go over Airbnb's fourth-quarter earnings and discuss why this might be the best company to hold in your long-term portfolio.
Two other companies in the travel industry reported earnings this week, Expedia and Marriott. Expedia reported earnings per share (EPS) of $1.65, beating expectations of $0.97 but missing on revenue. Marriott reported EPS of $1.30, beating expectations of $1.02, and revenue of $4.45 billion.
Airbnb reported revenue of $1.53 billion, up 78% year over year (YOY), and EPS of $0.08.
Airbnb's CEO said, "People can travel anytime, they are traveling to more places and they are staying longer." And so the new features the company has released are meant to help you travel better. Flexibility is one of the key features it has added. Flexible dates, flexible matching, and flexible destination.
Gross booking value grew 91% YOY to $11.3 billion. Net income was positive $55 million and a record for the quarter.
Q4 was the most profitable fourth quarter ever for the company, having reported adjusted EBITDA of $333 million.
Over the last two years, the average trip length increased by approximately 15%, with stays of more than seven days now representing nearly half of all gross nights booked. Meanwhile, long-term stays of 28 nights or more remained the fastest-growing category by trip length.
The company guided for next quarter revenue of $1.44 billion at the midpoint, which beat expectations of $1.27 billion.
Nvidia video
In this video, I will be covering Nvidia's recent Q4 earnings report as well as talking about its new partnership with Jaguar Land Rover, the upcoming product launches at GTC, and more.
The company reported record revenues across the board with overall business revenue of $7.64 billion, up 53% year over year (YOY), the gaming segment up 37% YOY to $3.42 billion, the data center segment up 71% YOY to $3.26 billion, and (my favorite one) the professional visualization segment up 109% YOY to $643 million, an increase of 11% from the previous quarter. This continued growth is driven by the ramp of NVIDIA Ampere architecture products and strong demand for workstations as enterprises support hybrid work environments, as well as growth in workloads such as 3D design, artificial intelligence, and rendering.
Earnings per share of $1.32 beat expectations of $1.22.
The termination of the acquisition of Arm will lead to a $1.36 billion write-off in Q1.
For Q1, the company expects revenue to be $8.1 billion, plus or minus 2%.
Jaguar Land Rover formed a multiyear partnership with Nvidia to jointly develop and deliver next-generation automated driving systems plus AI-enabled services and experiences for its customers.
Fiverr video
In this video, I will go over Fiverr's fourth-quarter earnings, and talk about how well the business is performing in an unpredictable environment.
Revenue for the quarter was $79.8 million, up 43% year over year. Active buyers reached 4.2 million, and spend per buyer is up 18% year over year to $242.
The most impressive metrics to me are take rate and gross margin, which stand at 29.2% and 83.4% (non-GAAP), respectively. What made this earnings report even better is that it beat guidance comfortably.
Revenue for the fiscal year 2021 grew 57% to $297.7 million above prior guidance of $284 million.
The company expects Q1 revenue to grow 25.5% at the midpoint to $86 million, overlapping tough year-over-year comps in the first half of the year. But it expects growth to accelerate in the second half of 2022.
Big spenders are the fastest-growing buyer segment and big earners are the fastest-growing seller segment. This shows Fiverr's success going upmarket, which will increase spend per buyer over time.
In 2020, all older cohorts, those who joined on or before 2018, on average retained 115% of revenue from 2019. This shows how highly efficient Fiverr is in terms of buyer acquisition.
Roku video
In this video, I will be going over Roku's Q4 earnings report and call. The stock crashed 26% because of revenue miss for the quarter and weak Q1 guidance. Long-term investors might see this as a good opportunity rather than a catastrophe.
The company reported total net revenue of $865.3 million, growing 33% year over year (YOY), with platform revenue increasing 49% and player revenue decreasing 9%. The latter is the result of ongoing supply chain issues.
For the fiscal year 2021, total net revenue grew 55% YOY to $2.76 billion. Platform revenue increased 80% YOY to $2.28 billion, and gross profit was up 74% YOY to $1.40 billion.
Roku is the No. 1 TV streaming platform in the U.S., Canada, and Mexico by hours streamed.
Roku's U.S. active account base has surpassed the U.S. video subscribers of all cable companies combined.
Active accounts grew 17% YOY to 60.1 million, while average revenue per user (ARPU) grew 43% to $41.03.
That’s all folks! See you next week.