Earnings report date: 4 February
Shares in Alphabet, parent company of search giant Google, had a bumpy ride earlier this week, despite turning in strong revenue growth in the fourth quarter of 2018 and hauling net income into surplus out of a loss last time.
The company reported on 4 February, and showed 22% revenue growth in the three months to December 31 to $39.3 billion, from $32.3 billion in the last three months of 2017.
A net loss of $3 billion in the fourth quarter of 2017 was turned into net income of $8.9 billion, with earnings per share up from a negative figure of $4.35 to a positive $12.77.
Ruth Porat, Chief Financial Officer, said: “With great opportunities ahead, we continue to make focused investments in the talent and infrastructure needed to bring exceptional products band experiences to our users, advertisers and partners around the globe.”
Alphabet’s’ shares had ended the previous session at $1,121. In what seemed a lack of enthusiasm for the results, they moved, during trading hours, from $1,120 to $1,136, to $1,130 and closing at $1,141.
But reports suggested they had lost ground in out-of-hours trading and on Tuesday they opened at about $1,131.
Investor concern may have been fuelled by a slowdown in the rate of revenue growth, from 24% in the fourth quarter of 2017 to 23%. In addition, the fourth-quarter operating margin was 21%, against 24% in the last quarter of 2017.
Company: Snap Inc
Earnings report date: 5 February
Snap Inc, the technology company dedicated to reinventing the notion of taking photographs, saw its shares surge after a better than expected set of full-year results.
Losses were cut, revenues pumped up and, perhaps most importantly in Snap’s business, what had been a steady loss of “daily active users” – or customers – was stemmed.
The shares had been trading at $6.72 on 4 February, on the eve of the results, and closed results day, 5 February, at $7.02.
The net loss for the year ended 31 December 2018 was $1.3 billion, against $3.5 billion for 2017. Adjusted earnings before interest, tax, depreciation and amortisation also improved, from a negative $720,000 in 2017 to $576,000 in 2018.
Revenue powered ahead, with a 43% rise from $824,949 in 2017 to $1.2 billion last year.
In terms of daily active users, there were 186 million in the fourth quarter of 2018, down slightly from 187 million in the same period of 2017 but unchanged on the third quarter of last year, suggesting the decline has slowed.
Evan Spiegel, Chief Executive, said: “We are substantially closer to achieving profitability.” But, as the Los Angeles Times noted: “Now Snap’s task is to start making more money off its millions of users.”
Company: Electronic Arts
Earnings report date: 5 February
Shares in Electronic Arts, the international video-game company, were sent on the sort of thrilling up-and-down ride that may have featured in one of its own productions.
The day before the 5 February announcement, the stock stood at $88.43. As results day dawned, it pushed up to $90.93, but then dipped to $90.01, before resuming its upward journey to $92.52.
One explanation for this temporary drop may have been the company’s self-effacing attitude to its results for the third quarter, which ended on 31 December 2018.
Although net revenue was up, compared with the same period of 2017, and net income had been pushed into positive territory, chief executive Andrew Wilson said: “This was a difficult quarter for Electronic Arts and we did not perform to our expectations. We are now applying the strengths of our company to sharpen our execution and focus on delivering great new games and long-term live services for our players.”
Total net revenue grew to $1.3 billion from $1.2 billion last time, made up of digital net revenue of $908 million, from $780 million last time, and $381 million from packaged goods and other net revenue, from $380 million in the third quarter of 2017.
Games from Electronic Arts include those related to Star Wars and the football federation, FIFA. In the latter category, FIFA 19 was the highest-selling console game in Europe.
Earnings report date: 6 February
Shares cheered a swing into profit in the latter part of last year by camera group.
The stock had been trading at $5.11 on 5 February, the day before the results, jumping to $5.30 the following day.
Reporting results both the fourth quarter and the full year, ending 31 December 2018, GoPro posted losses of $109 million in the full year, down on the $183 million lost during 2017. But full-year revenue fell 2.7% at $1.148 billion.
The picture was brighter in the fourth quarter of 2018 compared with the same period a year earlier. Net income was $32 million, against a loss last time of £58 million.
Net income per share in the fourth quarter was $0.22, against a loss per share of $0.41 in the fourth quarter of 2017.
Nicholas Woodman, founder and chief executive, said: "Thanks to a strong product line-up and efficient execution, GoPro grew both camera unit sell-through and market share in 2018, resulting in…profitability in the fourth quarter and second half of the year.
“With this momentum and a continued focus on expense management, we're planning for growth and profitability in 2019."
According to its website: “GoPro helps the world capture and share itself in immersive and exciting ways.”
Earnings report date: 7 February
Shares indropped despite the micro-blogging service reporting a 24% revenue surge in the fourth quarter of 2018 compared with the same period last year.
Net income was also higher, by 28%, and earnings before interest, tax, depreciation and amortisation (EBITDA) rose too.
But the stock took a tumble, from $34.16 a share on 6 February, the day before the results, to $31.05 on 7 February.
Revenue stood at $909 million, from $732 million in the fourth quarter of 2018, ending December 31, and net income was $255 million, from $91 million. So-called monetisable daily active usage – the number of people using the site from whom money can be made – was 126 million in the fourth quarter, against 124 million in the third quarter.
But there were suggestions that the share price fell on Twitter’s commitment to invest in changes to the service.
Twitter has come under fire in recent years as a forum for mass abuse of individuals and for the dissemination of “fake news”.
The company said: “In 2018, we took important steps to increase the collective health, openness, and civility of the public conversation on Twitter, helping people see high-quality information, strengthening our sign-up and account verification processes, and preventing the abuse of Twitter data.”
It added: “We will also continue to strengthen our login and sign-up processes to make it more challenging for bad actors to take advantage of accounts for abusive or malicious purposes.”