Well, it’s been a good earnings season so far for my stocks. Let’s take a look (I always use adjusted figures). My ratings of results are VERY subjective.
First to report was Amazon:
Revenue up 23%
AWS revenue up 43%
EPS up 38%
TTM Operating Cash Flow up 56%
TTM Free Cash Flow up 59%
And started lots of new stuff.
Rating: Didn’t blow it out of the water, but I’d rate it a good strong 9.2 out of 10
Then there was Shopify
Revenue up 75%!
Gross Merchandise Volume up 81%
Merchant Solutions Revenue up 92%
Monthly Recurring Revenue up 62%
Guidance for annual revenue raised from previous $580 to $600 million to current $615 to $630. That’s really raising guidance. And it will only keep going up.
Earnings hovering around just below breakeven, teasing us with -4 cents, improved from -6 cents the year before.
Most other metrics are growing wildly.
Rating: Give them a 9.7. I can’t give them a 10 when they are still not making profitable, but they do seem to be doing everything right and dominating their niche.
Followed by Paycom
Total Revenue was $119.5 million, first time over $100 million, and up 33%.
Recurrent Revenue was $118 million and 99% of total revenue.
EPS was 47 cents, up 42.5% from 33 cents.
Rating: I have no complaints. I’ll give them a 9.1 out of 10.
Then Hubspot
Revenue was up 40%.
Adj operating margin was positive 1.6%, up about 7.7% from minus 6.1%, a year ago. This was a total surprise. (To them too!)
Adj operating income was $1.3 million, up from a loss of $3.6 million. Ditto for the surprise.
They made 3 cents, up from a loss of 11 cents.
Free Cash Flow – They generated $11.6 million up from a loss of $4.9 million
Marketing customers were up 28%, and total customers were up 40%
Average subscription revenue was up.
Deferred revenue was up 43%.
Annual Guidance was previously for a loss of 26 cents at the midpoint. They upped that in one fell swoop to a loss of 7 cents, and they probably expect to beat that. They upped Free Cash Flow guidance to $13.5 million from just a couple of million.
Rating: I rated them at 11.0 out of a possible 10. Wow!
Possible fly in the ointment: They offered $300 million of convertible senior notes the next day. They are unsecured and convertible into cash, shares of common stock, or a combination thereof, at HubSpot’s election. The price had risen from $66.65 on Weds to $71.85 on Thurs. On Fri, after the announcement of the convertible notes, I was able to add a little at $68.80. It closed at $70.20.
And Square
Everything was great. Revenue was way up. Adjusted EBITDA was positive $27 million coming from a loss of $9 million. GAAP Net Income was minus $15 million from minus $49. Adjusted EPS was 5 cents from a loss of 5 cents.
Transaction-based revenue was $403 million, up 34%.
Take Rate, or Transaction-based revenue as a percent of GPV was 2.96%, up from 2.92%.
Subscription and services-based revenue was $49 million, up 106%, from a year ago, and this growth is accelerating from 81% growth sequentially. This is their future.
Rating: I’d give them a 9.4 out of 10
And Arista
Revenue up 38.5%
EPS up 37%
Adjusted Gross Margins of 64.2%
Good guidance.
Rating: Steady solid good perfomance. I’d give them a 9.0 out of 10
Followed by Ubiquiti the same day
Revenue up 30.4%
Adjusted EPS up 24%, and up 8% sequentially.
Repurchased about 2 million shares of stock at an average price of $49.80
Their new Enterprise line Revenues topped cash-cow Service Provider Revenues for the first time, and were up 60%, and up 16% sequentially.
Launched new products.
I’ve been a critic of Robert Pera, the CEO, in the past, but he was very impressive in the Conference Call.
Rating: Seem to be getting back on track, but not fully proven yet. Give them an 8.8 out of 10, but with high hopes for the future.
Mulesoft, the last report of the week.
Revenue of $61 million was up 56%
Operating Loss was $6.6 million, or 11% of revenue, up from a loss of $7.5 million, or 19% of revenue, a year ago.
Loss per share of 6 cents, up from a loss of 7 cents
Operating Cash Flow was negative $0.2 million compared to breakeven last year.
Free Cash Flow was a loss of $1.6 million compared to a loss of $0.2 million.
Guidance seemed conservative.
Rating: I’d rate it just an 8.3 in spite of the 56% revenue growth as cash flow and earnings don’t seem to be moving yet. Revenue and earnings did beat “expectations” though.
Hope this was helpful.
Saul
