Thursday’s Headlines: Shopify Shoots For The Stars
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Huazhu Hotels Group (HTHT) +12.8%
Trip.com Group (TCOM) +7.7%
Bumble (BMBL) +6.6%
Baozun (BZUN) +5.3%
Redfin (RDFN) +5.2%
Moving Down ⬇️
Chuy's (CHUY) -6.4%
Spotify (SPOT) -5.7%
Nautilus (NLS) -4.9%
Duluth Trading (DLTH) -3.3%
Texas Roadhouse (TXRH) -3.2%
1. Shopify (SHOP) continued its streak of successes last night as it reported revenues that blew past $1 billion. As post-pandemic demand for shopping continues to drive growth for its software and services, the Canadian powerhouse’s subscription products sales jumped 70% while its merchant services increased 52% year-over-year (YoY) to $785.2 million. Shopify also reported a whopping $879.1 million in net income thanks to unrealized gains related to equity investments. Amy Shapero, Shopify’s CFO, boasted: “Shopify fired on all cylinders in our second quarter, keeping our merchants well equipped to seize the opportunities presented in a post-pandemic retail era.” Read the full report here.
2. Facebook (FB) followed the theme of its Big Tech rivals in smashing earnings estimates whilst also warning of a significant slowdown in growth ahead. The social media giant posted earnings of $3.61 per share on revenue of $29.08 billion, up 56% YoY. Mark Zuckerberg gave shareholders a look into Facebook’s crystal ball as he used the earnings call to prepare shareholders for its future plans, discussing three key themes of creators, e-commerce, and "building the next computing platform." Two days after the company announced its new metaverse team, Zuckerberg stated: “In the coming years, I expect people will transition from seeing us primarily as a social-media company to seeing us as a metaverse company.” See the full press release here.
3. After posting mixed results for the second quarter, Ford Motors (F) raised its earnings outlook for the year. The automaker’s adjusted earnings of $0.13 per share and revenue of $24.1 billion both fell slightly short of estimates due to the global chip shortage. Ford explained that the shortage caused it to lose production of around 700,000 vehicles during Q2. Looking ahead, the firm raised its full-year adjusted earnings guidance to between $9 billion and $10 billion which pleased shareholders along with its surprise profit of over $1 billion. Boss, Jim Farley, said Ford is “spring loaded” for growth for the second half of the year citing strong reservation numbers for new vehicles, including its Bronco SUV. Read the full press release here.
More earnings from last night:
Align Technology (ALGN)
The global orthodontics company reported revenues of $1 billion, up 186.9% YoY, helped by its systems and services sales growing 214.7% YoY to a record $169.8 million. CEO Joe Hogan said: “I’m pleased to report our first $1 billion revenue quarter with record volumes reflecting continued momentum from both Clear Aligners and Systems and Services.” Read the full report here.
Cognizant Technology (CTSH)
The New Jersey-based firm impressed shareholders with revenue growth of 14.6% to $4.6 billion thanks to growth in its digital sales. During the second quarter, Cognizant spent $348 million on acquisitions which Chief Executive Officer, Brian Humphries, explained will be used to shift their “portfolio to faster-growing market segments while extending our capabilities and partnerships to help clients build modern businesses.” See the full press release here.
Everybody’s favorite robot helper came out with a quarterly miss on earnings of $0.27 per share while revenues of $365.6 million, up 31% YoY, topped expectations despite it facing supply chain challenges. CEO, Colin Angle, explained: “Our results were generally in line with our plans entering the quarter despite $17 million in orders that we could not fulfill due to COVID-related disruptions to shipping activities in southern China in late June.” See the full report here.
Cloud is king as ServiceNow proved with its earnings beat yesterday, posting revenue of $1.4 billion thanks to subscription revenue jumping 31% YoY to $1.33 billion. The firm also boasted a 25% increase YoY in customers with over $1 million in annual contract value which will help ServiceNow with its mission of becoming a “$15+ billion revenue company.” Read the entire report here.
The payment leader saw revenue of $6.24 billion, up 19%, fall short of estimates as profit of $1.18 billion dropped 23% from the year-ago period. On the flip side, PayPal’s total payment volume jumped 40% to $311 billion, while its Venmo app, which launched cryptocurrency services in April, witnessed its payment volume grow 58% to $58 billion. Access the full press release here.
The podcast streaming leader posted a mixed earnings report, recording sales of $2.3 billion and 365 million total monthly active users (MAU), representing 22% YoY growth in new members. However, this subscriber growth fell short of analysts' estimates of 371 million which the company attributed to pandemic pain, explaining: “COVID-19 continued to weigh on our performance in several markets, and, in some instances, we paused marketing campaigns due to the severity of the pandemic.” See more here.
There are nine companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.