Q4 2020 Tech Earnings: Shopify, Roku, Fiverr And Palantir

Shopify

Shopify had another outstanding quarter as the company took full advantage of secular industry trends to deliver a record holiday quarter. The company beat analyst expectations for revenue, earnings, and gross merchandise volume (GMV) when it announced Q4 results Feb. 17.

Q4 Results:

Shopify grew revenue 94% YoY to $978M, topping consensus estimates by $64M (7%). Adjusted EPS of $1.58 beat estimates by $0.37.

Guidance:

Shopify did not give guidance, but management expects growth rates to slow in 2021 as the vaccine rollout continues and people are able to move more freely.

Shopify Continues to Expand

Shopify President Harley Finklestein discussed four key trends driving Shopify’s growth.

Roku

Driven by strong advertiser demand, Roku beat on revenue and earnings when it announced Q4 results Feb. 18 with 58% growth year-over-year and guided for 51% growth for Q1 2021. The company expects to face tougher comps in the second half of the year yet strong margins and EBITDA growth helped the stock defend its rally from the previous months.

Q4 Results

Roku grew revenue 58% YoY to $649.9M, topping consensus estimates by $33.4M (5%). Non-GAAP EPS of $0.49 beat estimates by $0.54, as Roku posted a surprise profit. Monetized video ad impressions grew 100%, rebounding to pre-Covid levels.

Guidance

In the first half of 2021, management expects strong financial comparisons against the first half of 2020, which includes impacts from COVOD-19 and the economic lockdown. Guidance for Q1:

CEO: “Consumers are cutting the cord”

In 2020, 38% of all smart TVs sold in the U.S. were Roku TV models. Users streamed 17 billion hours, representing growth of 55% YoY. The company added 14 million active accounts, ending the year with 51.2 million active accounts, growth of 39% YoY.

Fiverr

Online freelance marketplace Fiverr beat on revenue and earnings as it closed out a breakthrough quarter in the company’s history.

Q4 Results and Guidance

The company grew revenue 89% YoY to $55.9M, topping consensus expectations calling for $54.1M. Non-GAAP EPS of $0.12 beat by $0.02 as the company achieved its most profitable quarter on record. Active buyers came in at 3.4M for the quarter, an increase of 45% YoY. Spend per buyer advanced 20% YoY to $205 while take rate improved 40 basis points YoY to 27.1%. Gross margin came in at 83.9% for the quarter.

CFO: “Amazing growth ahead”

Fiverr closed out a breakthrough year, delivering seven straight quarters of accelerating revenue growth since the company went public in 2019.

Palantir:

Palantir beat on revenue in its first full quarter as a public company. The earnings announced Feb. 16 included a slight miss in EPS, which did not help the stock price the next day when it traded nearly 21% lower. The stock is now trading about 12% lower than its pre-earnings price at a forward P/S of 35. Consequently, this is the valuation I had stated Palantir would likely trade at when the stock opened at about a forward P/S of 20.

Q4 Results

Palantir announced Q4 results February 16. Revenue grew 40% YoY to $322M, beating consensus estimates by $21.02M. Net loss of ($0.08) per share missed estimates of ($0.02), according to Bloomberg, despite the net loss improving from ($0.29) per share for the same period last year.

CFO: “Elevated growth rates for the next five years”

Palantir is guiding for sustained growth for the next five years and beyond.

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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