Q3 2020: Tech Growth Earnings Review — Pinterest, Snap, Microsoft And More

Q3 2020 Earnings Round One


Snap reported Q3 results on Oct. 20, beating both the top and bottom lines. The ongoing recovery of advertising budgets helped to boost Snap’s revenue growth to 52% YoY in Q3, which now sits just below the 58% pre COVID-19 growth rate the company recorded during Q1.


Pinterest rose with Snap following Q3 results as investors anticipated a similar recovery in ad spend for the social media company. The company delivered outstanding Q3 results that easily cleared consensus expectations.


Twilio pre-announced Q3 revenue would come in ahead of previously-issued guidance from the company of $401 million to $406 million, with analyst consensus at $404M. Expectations already were high going into the earnings report and Twilio went on to beat revenue estimates by 10% for revenue of $448 million and growth of 52% year-over-year. This was the largest beat by dollar in Twilio’s history, as referenced by analyst Khozema on the earnings call.


Shopify announced outstanding Q3 results, with revenue growth of 96% year-over-year and Gross Merchandise Volume growth of 109%. The revenue number came in 18% above consensus estimates while GMV was 13% above forecasts.

Q3 2020 Earnings Round One SNAP


Microsoft announced FQ1 2021 results on Oct. 27, outperforming on headline metrics led by strong Commercial Cloud and Azure growth. EPS of $1.82 came in ahead of estimates of $1.54 EPS while 12.4% YoY revenue growth represents a 4% beat above consensus.



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Beth Kindig

Beth Kindig


CEO and Lead Tech Analyst for the I/O Fund with cumulative audited results of 141%, beating Ark and other leading active tech funds over four audit periods in 2