Earnings

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Match Group records solid first-quarter revenue thanks to an increase in Tinder subscribers

Match Group’s revenue saw solid growth in the first quarter thanks to an increase in Tinder subscribers. The company, whose portfolio of dating apps also includes Match.com, PlentyOfFish, OkCupid and Hinge, among others, said in its earnings report today that total quarterly revenue grew 14% year over year to $465 million. If the effects of foreign exchange aren’t included, growth would have been 18%.

Net earnings attributable to shareholders grew 23% to $123 million, or 42 cents per share, from $99.7 million, or 33 cents in the same period a year ago. Operating income increased 6% to $119 million from $112 million. During the first quarter of 2019 and 2018, Match Group recorded an income tax benefit of $28 million and $12 million, respectively, related to the exercise of vesting of stock-based awards.

During the first quarter, Tinder average subscribers were 4.7 million, up from 384,000 in the previous quarter and 1.3 million year over year. In total, Match Group’s average subscribers increased 16% to 8.6 million, up from 7.4 million a year ago. Match Group said the growth in subscribers and increase in average revenue per user (ARPU) at Tinder boosted its revenue, but it was partially offset by foreign exchange effects. ARPU was flat year-over-year, but without foreign exchange effects, it would have increased by 4% to 60 cents.

The company said its adjusted EBITDA (earnings before interest, tax, depreciation and amortization) growth was impacted by the higher cost of generating revenue, specifically in-app purchase fees because revenue increasingly comes through mobile app stores, and higher legal costs, but offset by lower selling and marketing expenses. Adjusted EBITDA grew 13% to $155 million from $138 million.

During the first quarter, Match Group restructured its executive team, appointing three new general managers to oversee regions in Asia in order to gain more users there and focus on international growth. Its first-quarter earnings presentation highlighted opportunities in India, where Tinder is the highest-grossing Android app according to App Annie; Japan, where Match Group now owns two of the top five dating apps (Pairs is number one in Japan, while Tinder is ranks at fourth); and Southeast Asia, where Tinder is now within the top 10 grossing apps in six countries.

The company did not break down earnings by country, but during the first quarter, it had a total of 8,613,000 million average subscribers, with 4,361,000 in North America and 4,252,000 internationally. Total ARPU was 58 cents: 60 cents in North America and 56 cents internationally. Total revenue was $ $464.6 million, and of that $454 million was direct revenue, split between $237.8 million from North America and $216.2 million from international (indirect revenue is revenue that does not come directly from Match Group’s end users, and most of that is advertising revenue.

Samsung sees Q1 profit plummet 60%

Samsung’s Q1 earnings are in and, as the company itself predicted, they don’t make for pretty reading.

The Korean giant saw revenue for the three-month period fall by 13 percent year-on-year to 52.4 trillion KRW, around $45 billion. Meanwhile, operating profit for Q1 2019 came in at 6.2 trillion KRW, that’s a whopping $5.33 billion but it represents a decline of huge 60 percent drop from the same period last year. Ouch.

Samsung’s Q1 last year was admittedly a blockbuster quarter, but these are massive declines.

What’s going on?

Samsung said that sales of its new Galaxy S10 smartphone were “solid” but it admitted that its memory chip and display businesses, so often the most lucrative units for the company, didn’t perform well and “weighed down” the company’s results overall. Despite those apparent S10 sales, the mobile division saw income drop “as competition intensified.” Meanwhile, the display business posted a loss “due to decreased demand for flexible displays and increasing market supplies for large displays.”

That’s all about on par with what analysts were expecting following that overly-optimistic Q1 earnings forecast made earlier this month.

The immediate future doesn’t look terribly rosy, too.

Samsung said the overall memory market will likely remain slow in Q2 although DRAM demand is expected to recover somewhat. It isn’t expecting too much to change for its display business, either, although “demand for flexible smartphone OLED panels is expected to rebound” which is where the company plans to place particular focus.

On the consumer side, where most readers know Samsung’s business better, Samsung expects to see improved sales in Q2, where buying is higher. It also teased a new Note, 5G devices — which will likely limited to Korea, we suspect — and that foldable phone.

The Galaxy Fold has been delayed after some journalists found issues with their review units — TechCrunch’s own Brian Heater was fine; he even enjoyed using it. There’s no specific mention in the quarterly report of a new launch date but it looks like the release will be mid-June, that’s assuming what AT&T is telling customers is accurate. But we’ll need to wait a few weeks for that to be confirmed, it seems.

Samsung says it will announce a revised launch date for the Galaxy Fold in the next few weeks.
Executives are speaking on a 1Q earnings conference call.

— Tim Culpan (@tculpan) April 30, 2019

Elon Musk banks on his self-driving taxi service as Tesla burns through cash

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Tesla’s robo-taxis are needed more than ever.

The company lost $702 million in the first three months of the year and the EV maker doesn’t expect to be profitable again until the second half of the year, according to first quarter earnings results reported Wednesday. Revenue was lower than expected at $4.5 billion.

CEO Elon Musk had braced for a losing quarter back in February when he announced the $35,000 base price for the Model 3, but he still sounded disappointed on Wednesday’s investor call to discuss the sluggish numbers. 

“The brand is losing steam,” Jessica Caldwell, executive director of industry analysis at Edmunds, said in an email. Read more…

More about Tesla, Elon Musk, Earnings, Model 3, and Electric Vehicles

Stitch Fix tumbles 20% in after-hours trading following lukewarm earnings report

Shares of Stitch Fix plunged more than 20 percent in after-hours trading on Monday following the release of a tepid fourth-quarter earnings report.

The online retailer and personal styling service’s adjusted earnings exceeded analyst expectations, but its revenue and active users fell short of estimates. In the quarter ending July 28, Stitch Fix reported a net income of $18.3 million, or 18 cents per share, up from analyst’s 4 cents per share estimate. Its reported net revenue of $318.3 million, a 23 percent year-over-year increase, failed to meet analyst expectations of $318.6 million.

The San Francisco-based company’s user base grew 25 percent YoY, to 2.7 million, another disappointment to Wall Street, which was looking for more than 2.8 million.

Stitch Fix, which has a market cap of nearly $4.4 billion, also reported fiscal year 2018 earnings. In its first year as a public company, Stitch Fix had $1.2 billion in net revenue, $44.9 million in net income and an adjusted EBITDA of $53.6 million.

Founder Katrina Lake took the company public on the Nasdaq in November 2017 in a highly anticipated consumer IPO. The company raised $120 million in the process, selling 8 million shares after making a last-minute decision to downsize its offering ahead of its first day of trading.

Following the release of its first-ever earnings report in December, shares of Stitch Fix similarly took a huge hit, plunging down 10 percent on the news.

The company usually finds its footing and, overall, its stock has continued to climb since its IPO. Stitch Fix had its best day yet on September 18 when its stock was valued at $52.44 apiece, up from the initial price of $15 apiece.

Alongside its earnings report, Stitch Fix announced the upcoming launch of Stitch Fix U.K., its first-ever international market expected to be available to consumers by the end of FY 2019. Following the release of its Q3 earnings report, the company announced the hire of Deirdre Findlay as its new chief marketing officer, as well as the launch of Stitch Fix Kids.

On the earnings call Monday, Lake emphasized how both services, Stitch Fix Kids and Stitch Fix U.K., will augment Stitch Fix’s total addressable market.

“We believe our ability to create a uniquely personalized shopping experience is something that will resonate with consumers and brands outside of the U.S.,” Lake said in a statement.

Pandora shares up 8% after surprise earnings beat

Pandora’s quarterly earnings report was music to investor’s ears.

The digital radio platform reported a better-than-expected first quarter report after the bell on Thursday, sending shares up 8% in after-hours trading.

Wall Street liked that the company showed a sizable increase in subscriber revenue, posting $104.7 million, a 63% increase from last year. Pandora has 5.63 million paid listeners, up 19% from the same timeframe in 2017.

By contrast, Apple Music says it has 40 million subscribers and Spotify has 75 million, so Pandora is a distant third in terms of paid users.

But the competition is already reflected in Pandora’s stock price. It closed Thursday at $5.75, which is up a buck for the past month. It’s also substantially beneath the $37 per share that the stock was trading at in 2014. Its market cap is currently $1.45 billion.

In addition to subscribers, Pandora makes money from its unpaid users via ads. The company had 72.3 million active listeners, bringing in $319.2 million in revenue. Analysts had expected $304.3 million.

Its adjusted loss per share was 27 cents, well above the negative 38 cents that Wall Street forecast.

“Pandora is exactly where we want to be: at the center of a growing market with huge potential,” said Roger Lynch, CEO of Pandora, in a statement.

 

 

 

Samsung forecasts a strong quarter on the same day its CEO resigns citing “unprecedented crisis”

 This post has been updated to reflect the announcement of Oh-Hyun Kwon’s resignation.   Samsung Electronics made two announcements today that contrasted starkly with one another in tone. First, it issued an optimistic third-quarter earnings guidance. Then, a few hours later, it posted a resignation letter from chief executive officer and vice chairman Oh-Hyun Kwon, who said it is time… Read More

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Chinese dating app Momo sees record revenue growth thanks to live streaming

American dollars falling in the sky Editor’s note: This post originally appeared on TechNode, an editorial partner of TechCrunch based in China. Momo, China’s top location-based social networking app, has continued its impressive user growth from last year and added solid financial figures to back it up, according its most recent earnings report. The company, which was previously backed by Alibaba, went public… Read More

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Sony’s profit drops 84% to $169M as film business takes $920M write-down

shutterstock sony Sony’s PlayStation business was one of a few bright spots from its latest financial report, which was over-shadowed by a near-billion dollar write-down for its film business. The Japanese tech giant posted a 19.6 billion JPY ($169 million) profit on revenue of 2,397.5 billion JPY ($20.7 billion) for Q3. Revenue was down seven percent year-on-year, but net profit sunk by 84 percent… Read More

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Facebook beats in Q4 with $8.81B revenue, slower growth to 1.86B users

facebook-mau Facebook had another strong quarter in Q4 2016, earning $8.81 billion in revenue and $1.41 EPS. It pulled that from 1.86 billion monthly users, up 3.91% this quarter, or 70 million users, from 1.79 billion, but at a slower pace than its 4.67% growth last quarter. Mobile now makes up 84% of its ad revenue, the same as last quarter, accounting for $7.248 billion, signalling that Facebook has… Read More

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Nintendo reports $569M profit as Pokémon game sales get off to good start

pokemon-sun-moon22 Nintendo only takes a fraction of the revenue from Pokémon Go, the smash hit game of 2016, but its popularity has certainly boosted its own Pokémon games as evidenced by the company’s latest financial report. Nintendo reported a 64.7 billion JPY ($569 million) profit on revenue of 174.3 billion JPY ($1.5 billion). That’s a return to the black following a $57.1 million loss… Read More

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LG posts $224 million loss as ‘weak’ selling G5 smartphone drags it down once again

lg-g5 (4 of 14) Samsung just recorded its best quarter of business for three years, but the same can’t be said of fellow Korean electronics firm LG. LG just carded a KRW 258.80 billion ($223.98 million) net loss for Q4 2016 on account of another poor performance from its mobile division, which saw revenue drop by nearly one-quarter over the past year. LG recorded positive revenues of KRW 14.78… Read More

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