Earnings Roundup – Nov 6, 2019

Four companies in the Freedom Portfolio reported earnings yesterday after market close. How did they do? Here’s a quick earnings roundup:

Subscribing members rose 31%, from 80.7 million to 105.8 million.
99.2% of subscribers are paying members.
Total revenues increased 7% year-over-year.
Stock up 16% at the time of this writing.
Honestly not a great quarter, with a very cautious tone warning about a “challenging environment”. Wall street seems happy, though. Maybe due to low expectations after the stock has under performed over the past few months?

Revenue up 51.2% year-over-year.
Signed contract with Cigna, effective December 1, 2019.
Stock up 2% at the time of this writing.
Pretty good report. They had a miss on earnings but a beat on revenue, which I’m comfortable with for a company still in growth mode.

Revenue up 70% year-over-year.
Market share of U.S. existing home sales by value increased by 0.02 percentage points from the second quarter of 2019 and 0.11 percentage points year-over-year.
Visitors to their website and mobile application increased by 22% year-over-year.
Real estate services gross margin increased to 35% from 34% a year ago.
Stock has been all over the place, but is currently down 3% as of the time of this writing.
A really great earnings report for the second consecutive quarter, and yet the stock continues to languish or even go down afterwards for some reason. I can’t quite figure it out, but am still optimistic on the long term prospects. At some point the market needs to recognize the growth with this company.

Total net revenue up 44% year-over-year.
Excluding bitcoin, Cash App revenue up 115% year-over-year.
Non-GAAP earnings per share (EPS) up 92%.
Stock up 7% as of this writing.
A really solid earnings report that shows that the growth story is still very much intact for Square. The stock has been strangely flat-to-down this year while similar companies like Shopify (SHOP) have soared. The growth with the cash app is especially exciting, and I’m very interested in seeing where the new stock buying functionality takes them.

2 thoughts on “Earnings Roundup – Nov 6, 2019”

adrian says:

November 7, 2019 at 11:11 am

Why does square report Non-GAAP earnings? Second question: how is their earnings different from GAAP? I.e. what earnings formula do they use? It seems weird to use non-GAAP and I wonder what the reasoning there is.

1. paul.essen says:
  
  November 7, 2019 at 1:28 pm
  
  The short answer is: I’m not too aware of the specific reasons why Square decides to use non-GAAP earnings and what formula they use, but I can speculate. Non-GAAP earnings are often used when the company believes that some one-off event should be excluded from earnings because it doesn’t accurately represent how the company is doing. I suspect that in this specific case, Square is backing out the financials involved with Caviar, its food ordering platform that it recently sold. Because they won’t have it going forward, it probably makes sense to pull out the revenue from Caviar from the earnings they are reporting.