Thursday's Headlines: Don't Mess With The Mouse

Thursday's Headlines: Don't Mess With The Mouse

The answer to yesterday’s anagram was Peloton

Let’s see if you can unravel today’s one, ​​and let us know on Twitter @MyWallStHQ if you think you’ve got it.

Scaly Evil Lion

Hint: The tech capital of the world and a popular U.S. TV show.

We’ll reveal the answer in tomorrow’s headlines.

1. Disney (DIS) reported Q4 earnings results last night, which have sent shares up more than 6% after-hours. The house of mouse added 11.8 million new Disney+ subscriptions this quarter — this is above and beyond most forecasts that were coming in at about 7 million on average. Management has also reiterated its target to add a total of 230-260 million users to the platform by 2024 — that would be more users than Netflix currently has worldwide. But, one of the key factors sending the stock roaring is its parks business. The tourism segment saw a huge bounceback doubling revenue to $7.2 billion compared to last year’s $3.6 billion. Read the full press release here

2. Salesforce (CRM) is looking to cash in on the non-fungible token (NFT) boom. A new product offering coined ‘NFT Cloud’ is rumored to be a platform similar to OpenSea, an NFT marketplace for artists and digital creators alike, that is currently valued at over $13 billion. What Salesforce is looking to achieve is the next iteration of that. With strong brand recognition behind it, and many relationships already formed with multi-billion dollar companies, this could be a new diverse revenue stream that could foster new relationships with other multinationals — given the likes of Nike, Disney, and Walmart, have already shown interest in the technology. Read the full story here.

3. Twilio (TWLO) reported earnings results last night that came in well ahead of expectations, with shares spiking more than 19% after-hours. This was attributable to a narrower loss than expected, and a beat on revenue expectations, $843 million reported v.s. $768 million anticipated. Revenue increased 54% from the year prior, thanks to the important acquisitions of Segment and Zipwhip which contributed $89 million to its total revenue. In the five years from 2016-2021, Twilio has produced a 59% compound annual growth rate (CAGR) in revenue, and going forward, 30% growth and 60%+ margins are expected over the next three years. Read the full report here

Some more earnings from last night:

iRobot (IRBT) saw a 9% YoY increase on a 12-month basis but Q4 showed a 16% decline it the latest quarter due to lack of access to essential semiconductor components. On a positive note, iRobot had a 44% increase in its connected customer base to 14 million users and CEO Colin Angle pointed out, ​​“Looking ahead, the growth runway for robotic floor care remains fundamentally healthy”.

Nautilus (NLS) was a victim of the narrative that stay-at-home stocks’ best days are behind them. Revenue declined 22% from the year prior, and reported a net loss of $0.43 per share, or $13.5 million. That being said, Nautilus grew JRNY connected fitness subscriptions to 250,000, and in the first 9-months Nautilus has seen positive revenue growth in the low single digits.

Nine companies on the MyWallSt shortlist will report earnings today:

Blackline (BL)
Cloudflare (NET)
Zendesk (ZEN)
Coca Cola (KO)
Twitter (TWTR)
Eventbrite (EB)
Zillow (Z)
Avalara (AVLR)
Datadog (DDOG)

Get this week’s full earnings calendar here.

David GranahanDavid Granahan