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

Q3 2020 Earnings Round One

Snap:

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:

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:

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:

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:

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

1.4K Followers

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