Tuesday’s Headlines: Stitch Fix Reports A Surprise Profit
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lemonade (LMND) +7.9%
Tesla Motors (TSLA) +7.1%
Spotify (SPOT) +7.0%
Cloudflare (NET) +6.0%
Zillow (Z) +4.6%
Moving Down ⬇️
DocuSign (DOCU) -4.4%
Baozun (BZUN) -3.6%
Twilio (TWLO) -3.2%
Nautilus (NLS) -3.2%
1. Stitch Fix (SFIX) reported a surprise profit in its first fiscal earnings report, sending shares up 33% in after-hours trading yesterday. The subscription-based apparel retailer posted adjusted earnings per share (EPS) of $0.99 on revenue of $490.4 million, versus Wall Street’s expectations of a $0.20 loss on revenue of $481.2 million. The online personal styling service reported having 3.8 million clients, up 10% year-over-year (YoY) as consumers turned to the web to shop for new clothes during the pandemic. During the earnings call, Stitch Fix also announced a new CFO, Dan Jedda, formerly VP and CFO of digital video at Amazon. Read the full press release here.
2. Airbnb’s monster 2020 initial public offering (IPO) is poised to get even bigger, after its price range got a dramatic 20% lift yesterday. The online rental marketplace will go public between $56 to $60 per share, up from $44 to $50 a share previously and intends to sell 50 million shares, bringing its valuation to almost $42 billion. The release is not coming at an opportune time for Airbnb, its accounting reveals during the first nine months of 2020 it suffered a 32% YoY decline in revenue and a net loss of around $697 million. The IPO is scheduled for this Thursday, December 10th. Read the full story here.
3. Lemonade (LMND) shares jumped 7.8% yesterday on news of it launching its renter's insurance in France. The company’s third European debut puts Lemonade in direct competition with local rival, Luko. Renters insurance is a very lucrative industry as home insurance is a legal requirement in France, due to the high tenant turnover in the country Lemonade will have plenty of opportunities to convince people to switch over. The company offers an easier signup process, no flat fee, and the opportunity to donate any left over money at the end of the year to non-profits. Read the full story here.
Some more earnings from last night:
Coupa Software (COUP)
Global technology platform Coupa Software posted EPS of $0.18 on revenue of $133 million, up 31% YoY, sending shares up 4%. Analysts expected EPS of only $0.3 on revenue of $124 million. The company said it was happy to see 30% year-over-year billings growth and also issued strong revenue guidance for the fourth quarter. Read the full press release here.
Smartsheet shares soared 12% in after-hours trading after reporting revenue of $98.9 million, up 38% YoY, and a net loss of $0.12 in its Q3 earnings. Wall Street expected revenue of $94.6 million and a loss of $0.21 per share. CEO Mark Mader cited that Smartsheet nearly doubled its clients in the quarter and the increase in large contracts was owed to enterprises shifting their work to digital platforms. Read the full press release here.
There are 2 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.