Google (Alphabet)

Google’s parent company Alphabet beat revenue and earnings per share expectations however increased costs pushed shares down.

  • Full year revenue up 23 per cent year-on-year to $136.8 billion, while Q4 revenue jumped 22 per cent to $39.3 billion.
  • Advertising revenue for the three months ended December 31 were $32.63 billion
  • EPS came in at $12.77.
  • Capital expenditure almost doubled from $US12.6 billion during the same period last year to $US25.46 billion in Q4 2018.
  • Alphabet’s Other Bets segment, which includes self driving car business Waymo, lost $US1.328 billion during the quarter, verses a loss of $US748 million last year.

“With great opportunities ahead, we continue to make focused investments in the talent and infrastructure needed to bring exceptional products and experiences to our users, advertisers and partners around the globe,” said Ruth Porat, CFO of Alphabet and Google.

Amazon

01/02/2019: Amazon exceeded investor expectations for its fourth quarter and overall yearly earnings. This increase can be attributed to a solid retail performance, which included the Black Friday and Cyber Monday sales, and continued growth from its cloud computing business AWS, where sales were up 45 per cent to $7.4 billion.

This was the biggest holiday shopping season ever for Amazon devices, with customers purchasing millions more devices compared to the 2017 holiday shopping season.

Jeff Bezos, CEO at Amazon did not comment on the financial figures but said the Echo Dot was the best-selling item across all products on Amazon globally.

For the year ending 2018

  • Net sales increased 31 per cent to US$232.9 billion, compared with US$177.9 billion in 2017.
  • Operating cash flow skyrocketed 67 per cent coming to US$30.7 billion for the year.
  • Net income increased to US$10.1 billion, or US$20.14 per diluted share, compared with net income of US$3.0 billion, or $6.15 per diluted share, in 2017.

Fourth quarter ending December 31 2018

  • Net sales increased 20 per cent to US$72.4 billion in the fourth quarter, compared with US$60.5 billion in fourth quarter 2017.
  • Operating income increased to US$3.8 billion in the fourth quarter, compared with operating income of US$2.1 billion in fourth quarter 2017.
  • Net income increased to US$3 billion in the fourth quarter, or US$6.04 per diluted share, compared with net income of US$1.9 billion, or US$3.75 per diluted share, in fourth quarter 2017.
Infographic: Amazon's Impressive Long-Term Growth | Statista You will find more infographics at Statista

Facebook

31/01/2019: Privacy scandals haven’t tarnished Facebook’s financial performance, with the social media company beating revenue expectations and lifting profit by 61 per cent.

  • For the quarter ended December 31, revenue was up 30 per cent year-over-year, hitting $16.9 billion. Full year revenue was $55.8 billion, which is predominantly made up of advertising revenue, which increased 38 per cent to $55 billion.
  • Mobile advertising revenue made up 93 per cent of ad revenue in the fourth quarter, up from approximately 89 per cent of advertising revenue in the fourth quarter of 2017.
  • Net Income was up 61 per cent to 6.88 billion and EPS was $2.38
  • Daily active users were up 9 per cent to 1.52 billion, Monthly active users were also up 9 per cent to 2.32 billion.
  • The company estimates 2.7 billion people use its family of apps — Facebook, Instagram, Whatsapp or Messenger — every day.

“Our community and business continue to grow,” said Mark Zuckerberg, Facebook founder and CEO. “We’ve fundamentally changed how we run our company to focus on the biggest social issues, and we’re investing more to build new and inspiring ways for people to connect.”

Infographic: Facebook's Revenue Per User Rises Steeply | Statista You will find more infographics at Statista

Microsoft

31/01/2019:Microsoft’s fourth quarter earnings were in line with Wall Street’s expectations.

In its cloud computing division, Microsoft Azure revenue grew 76 per cent, the same as last quarter, but slower than the 98 per cent surge a year earlier.

  • Microsoft revenue came in at US$32.5 billion an increase of 12 per cent.
  • Operating income is at US$10.3 billion growing 18 per cent.
  • Net income was US$8.4 billion GAAP and US$8.6 billion non-GAAP
  • Diluted earnings per share was US$1.08 GAAP and US$1.10 non-GAAP
  • Revenue in Intelligent Cloud was US$9.4 billion and increased 20 per cent.

Satya Naella, CEO of Microsoft said, “Our strong commercial cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services, and healthcare.

“We are delivering differentiated value across the cloud and edge as we work to earn customer trust every day.”

Amy Hood, executive vice president and CFO of Microsoft said, “Our solid execution delivered another strong quarter, with commercial cloud revenue growing 48 per cent year-over-year to $9.0 billion.

Infographic: Microsoft's Share Price Tripled Under Satya Nadella | Statista You will find more infographics at Statista

Alibaba

31/01/2019: A strong performance in its core commerce business and cloud computing helped Alibaba beat analyst analyst expectations for the quarter ended December 31, 2018.  

  • Total revenue increased of 41 per cent year-over-year to US$17.1 billion
  • Diluted EPS was US$1.84 non-GAAP diluted EPS was US$1.77
  • Year-over-year revenue from core commerce increased 40 per cent to US$14.95 billion and cloud computing surged 84 per cent to US$962 million.
  • The ecommerce giant added 33 million new mobile monthly active users during the quarter to reach 699 million and its has 636 million annual active consumers.
  • Shares were higher on the news, lifting more than 5 per cent.

Apple

30/01/2019: Apple has released its earnings for the quarter ended December 29. Revenue and profit were lower than the year prior, however shares in the Cupertino giant were slightly higher following the announcement.

  • The company’s quarterly revenue is at US$84.3 billion, a drop of 5 per cent to the prior year.
  • Its diluted EPS came in at US$4.18 up 7.5 per cent.
  • iPhone revenue plummeted 15 per cent compared to the prior year. The revenue from all other Apple products and services grew 19 per cent from the previous year.
  • Apple’s guidance for the second quarter shows revenue between US$55 billion and $59 billion; gross margin between 37 per cent and 38 per cent and  operating expenses between US$8.5 billion and US$8.6 billion.
  • Apple shares grew 2 per cent after results were posted.

Tim Cook, CEO at Apple said, “While it was disappointing to miss our revenue guidance, we manage Apple for the long term, and this quarter’s results demonstrate that the underlying strength of our business runs deep and wide.”

Speaking to Reuters, Cook said the company is “rethinking how it prices the iPhone outside the United States” as Apple sets the iPhone price in US dollars which subsequently raises the price of the device in international markets.

Commentators say the trade war between China and the US has affected iPhone sales as China is one of the biggest smartphone markets.

As earnings season continues in the US, Which-50 will update this post with results from the major tech companies as they are released.


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