Netflix came in strong with the recent earnings and there is no reason to expect Roku will not also come in strong especially as Covid and stay-at-home orders have accelerated the shift towards Connected TV.
It’s easy to compare Roku’s roughly 50 million users to Netflix’s 200 million and to assume Roku is a much smaller company or lagging the subscription behemoths, such as Disney Plus. This is a mistake as the ad-based video-on-demand (AVOD) market is a newer market than subscription-video on demand (SVOD). …
Recently, fuboTV (NYSE:FUBO) has been hit hard by short sellers. The criticism is based on fuboTV’s trailing financials and negative gross margins. We recommended fuboTV at $16 and have a blended cost basis of $20.10 and want to take this opportunity to connect a few dots on this company for anyone interested in hearing why we remain long.
Our analysis starts with audience growth because this is the predominant key metric in media. We also discuss the financials including the forward guidance. …
In this analysis, we review the recent earnings reports from Zoom Video, Okta, Snowflake, Crowdstrike, ZScaler and Elastic.
Zoom Video Q3 Earnings
Zoom Video provided a nearly flawless earnings report for the first full quarter that followed initial work-from-home orders. The company reported lower-than-expected churn and market-leading growth on both an annual and quarterly basis. Notably, margins were thinner on both a YoY and QoQ basis due to free accounts. Regardless, it’s hard to find fault with Zoom Video’s current level of profitability in relation to other tech growth stocks (outlined below).
Strong forward guidance also provides a glimpse into…
Google Cloud certainly has the technical chops and engineering talent to compete with Microsoft Azure and Amazon’s AWS when it comes to cloud infrastructure, edge computing — and especially inferencing/training for machine learning models. However, Google may lack focus due to Search and YouTube being the main revenue drivers. This is seen from the company’s inability to ignite revenue growth in the cloud segment during a year when digital transformation has been accelerated by up to six years due to work-from-home orders.
In this analysis, we discuss why Google (Alphabet) may have missed a critical window this year for the…
Roku
Roku (NASDAQ: ROKU) reported Q3 earnings on Nov. 5. The 73% year-over-year revenue growth the company announced was 23% above consensus expectations. Gross profit rose 81% YoY while gross margin rose 216 basis points in total to 47.6%.
Roku added 2.9M active accounts in the quarter (+43% YoY). Total streaming hours increased by 0.2 billion hours over the last quarter to 14.8B (+54% YoY), while ARPU grew 20% YoY to $27.
Roku was a beneficiary of the rebound in ad spend as the company saw Q3 monetized video ad impressions grow 90% YoY vs. 50% YoY growth last quarter. Roku…
Before breaking out the earnings reports from the high-growth universe, here are some of the results from big tech earnings. Each company beat on both the top and bottom lines. Other than Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), they were all trading down after-hours following results as the market digested the magnitude of the beats, and in Apple’s (NASDAQ:AAPL) case, the lack of guidance.
Beth.Technology
Snap:
Snap reported Q3 results on Oct. 20, beating both the top and bottom lines. …
Rebound numbers from Q3 will look spectacular following the paralyzing effects of strict shelter-in-place orders in Q2. The economy is officially in a recession after posting two negative quarters of GDP growth at (5%) in Q1 and (32%) GDP in Q2. The latest estimate from Atlanta’s Fed GDPNow for Q3 2020 is showing a record rebound of 35.3%.
This represents an increase of 7.9% quarter-over-quarter and 3.1% below the pre-recession high. For comparison purposes, the Financial Crisis of 2008 bottomed at 4.0% below its pre-recession during the third and fourth quarters of its recession.
frbatlanta.org — David Marlin, The chart…
Snowflake is the most anticipated IPO of the year. Investors should decide in advance how much they are willing to pay as Snowflake will test the upper limits of what it means to have a stretched valuation. Heck, the company has even inspired value-legend Warren Buffet to change his thesis and invest in an IPO prior to profitability (!)
Perhaps because the company delivered sky-high revenue growth last fiscal year of 173% and 121% in the most recent quarter with a record-breaking net retention rate of 158% — which is the highest of any public cloud company at time of…
When considering if I should buy into a SaaS public offering, my first thought is the company better be special because there are some very solid choices already on the market. Despite Asana having investable growth, the company may be in too-crowded of a space for the size of the addressable market. This is evident in the widening losses and the need to double R&D and sales and marketing to keep their revenue growth competitive. Furthermore, in the most recent quarter, there was notable deceleration in revenue from 86% for the fiscal year to 71% year-over-year in the April quarter…
Shelter-in-place has led to a surge for many stocks across e-commerce, online streaming, video conferencing and gaming as these subsectors are seen as the primary beneficiaries of covid-19. In many cases, this boost in usage is temporary as it requires people to spend an unnatural amount of time indoors, not to mention the effects of covid are fully priced-in to most of these stocks.
The market can be myopic due to the sheer number of swing traders and machines driving the market. Therefore, strong consideration should be given to the long-term effects of covid even if the gains are not…
Beth Kindig
Senior Product Evangelist in data and security. All things #startups #mobile, #data #security and #IoT. Snowboarder, book worm.
