Friday’s Headlines: Peloton Sales Surge 141%
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
TrueCar (TRUE) +3.5%
Arista Networks (ANET) +3.3%
iRobot (IRBT) +3.3%
Costco (COST) +2.8%
Moving Down ⬇️
Redfin (RDFN) -15.7%
Etsy (ETSY) -14.6%
Cloudflare (NET) -12.6%
Twilio (TWLO) -9.4%
Cognizant Technology Solutions (CTSH) -7.8%
1. Thanks to the at-home fitness leader investing heavily in its supply chain to improve delivery times, Peloton (PTON) sales surged 141% in Q1. Peloton beat expectations with a loss per share of $0.03 on revenue of $1.26 billion. In addition, subscription revenue also made a big leap, up 144% from 2020 levels to $239.4 million, making up 19% of total revenue. The exercise equipment maker explained that due to the recent mass product recall, it now expects fourth-quarter sales to fall by $165 million. Peloton is also facing additional costs because it’s offering customers full refunds and will waive all treadmill customers’ membership fees for three months. Read the full press release here.
2. More bad news for Tesla (TSLA) investors, the EV maker said it won't have full self-driving technology this year. CEO Elon Musk was confident of meeting the deadline in Tesla’s earnings call back in January, but a Californian regulator stated in a memo that the eccentric leader's plans do not match up with ‘engineering reality.’ Meanwhile, the California Highway Patrol has still not stated if the Tesla driver, who tragically died in a vehicle collision with an overturned truck on a highway in California, was operating on Autopilot or not. Check out the full story here.
3. Square’s (SQ) Bitcoin bet really paid off last quarter, with cryptocurrency trading boosting the company’s revenue by 266%. Square’s earnings blew past Wall Street’s estimates across the board, posting earnings per share of $0.41 on revenue of $5.06 billion versus the $3.36 billion expected. The digital payments company recorded $3.5 billion in Bitcoin revenue, but gross profit from the digital asset only totaled $75 million, making up 2% of Square’s total revenue. Still, CEO Jack Dorsey is bullish on the cryptocurrency, stating: “Our focus, first and foremost, is on enabling ... bitcoin to be the native currency.” See the entire press release here.
Some more earnings from last night:
Shares of Bill.com shot up more than 16% after the bell last night after the financial software company reported an adjusted loss of $0.02 per share, much narrow than analysts had expected. Management alos reported revenue growth of 45% to hit just shy of $60 million while also announcing that the company is set to buy Divvy, a maker of expense-management software, for about $2.5 billion in cash and stock. More here.
It was a strong start to the year for Blackline, with revenues growing 20% year-on-year to hit $98.9 million in the last quarter, while profits increased to $7.1 million, or $0.11 per share, on an adjusted basis. Amongst the host of highlights from the call, a dollar-based net revenue retention rate of 106% also stood out, as well as the company's inclusion on G2's list of best financial products this year. More here.
It's been a tough time for restaurants recently, as evidenced once again by Chuy's last quarter as revenue dropped more than 7% to hit $87.7 million and comparable restaurant sales decreased 3.2%. However, CEO Steve Hislop noted that there has been a "continued sales recovery during the first quarter" and positive trends are continuing into the second quarter as more locations begin to open up. More here.
Shares of Cognex were volatile after the bell last night after the company reported the highest first quarter revenue, net income, and earnings per share in its 40-year history. Sales jumped 43% to hit $239 million in the period, driven by a strong performance in the e-commerce sector of logistics. However, management warned that they expect revenue for consumer electronics to be below the level reported last year, which was outsized due to the pandemic.
The San-Francisco-based software firm recorded a strong earnings bear with revenue growing 51% YoY to $138 million, while the non-GAAP net loss per share was $0.03 — dollar-based net retention soared 123% to a new record. CEO Matthew Prince showed no signs of fatigue for the company though, stating “There’s no slowing down as we continue to deliver business-critical offerings and displace point solutions with Cloudflare’s robust global network.” Read more here.
Datadog had plenty of bark in Q1 after revenue surged 51% YoY to $199 million and ARR customers with 100k+ contracts jumped to 1.437 from 900 a year ago. Management was bullish on its product offering for a post-pandemic world, where digital projects will be prioritized by companies, leading to more opportunities for Datadog to grow. Read more here.
The ticketing and experience technology platform modestly topped Wall Street expectations with revenue of $27.8 million, up 4% YoY, and an adjusted loss per share of $0.37. As vaccinations continue to roll out worldwide, Eventbrite management specifically cited the “light at the end of the tunnel” and even reported a notable uptick in event scheduling and ticket claiming on its platform in Q1. Read more here.
It’s been yet another great quarter for the previously beleaguered action camera-maker, which reported revenue growth of 71% YoY to $204 million, thanks largely to its GoPro subscription service surpassing 1 million users. “This is the new GoPro. We’ve evolved from a hardware unit-sales-centric business to a successful direct-to-consumer subscription-centric business with a significant opportunity to grow margin and profitability with continued subscriber growth,” said CEO Nicholas Woodman. Read more here.
Hain Celestial (HAIN)
Despite a sales decrease of 11% YoY, the natural product’s maker reported a Q1 earnings beat of $0.44 per share, or $34.3 million — up from $25 million a year ago. CEO Mark Schiller was optimistic that the worst of any economic difficulty was behind the company, stating “I remain confident we will continue to see growth in our bigger businesses, solid margin expansion and profit growth as we progress through the remainder of fiscal year 2021.” Read more here.
Monster Energy (MNST)
There wasn’t much energy in this drinks Q1 earnings, which lagged analyst estimates despite record sales of $1.24 billion and EPS of $0.59. Its forecast for Q2 was worryingly lower due to aluminum shortages in North America and Europe, which the company has claimed could cause constraints to growth throughout the year. Read more here.
Planet Fitness (PLNT)
It comes as no surprise that Planet Fitness missed estimates for Q1 as the pandemic continues to restrict its ability to grow or fully reopen its locations. The gym chain reported earnings of $0.10 per share on revenues of $111.88 million, compared to a year ago when EPS was $0.16 on revenue of $127.23 million. Read more here.
It was an exceptional Q1 for the brand-agnostic streaming platform, which reported net revenue growth of 79% to $574 million and added 2.4 million active accounts, bringing its total to 52.6 million. As more and more platforms compete for streaming space, Roku stands to gain the most as a neutral middleman for consumers to use as a neat package for their many subscriptions. Read more here.
It was a slow quarter for the vehicle pricing company, which saw revenue fall 17.5% YoY to $65.1 million, with losses from its operations coming in at $8.4 million, or $0.09 per share. Due to the ongoing uncertainty with COVID-19, the company refused to provide guidance for the coming quarter or year. Read more here.
There are two companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.