Tech Earnings Roundup: Get the Latest Investing ‘Intel’
Key takeaways
- Intel saw its largest loss in company history, making it five consecutive quarters of falling sales
- Snap sees revenue fall for the first time since going public
- Cloudflare beat Zacks Consensus estimate for earnings per share
Earnings season is upon us, so we’re checking out some of the biggest tech earnings reports. Let’s see who started 2023 well and who didn’t.
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Intel: The chips are down
Things are looking a little rough for this tech giant. Intel’s Q1 earnings revealed its greatest loss ever — even worse than losing $687 million in Q4 2017. It’s also seen falling sales for five quarters in a row.
While Intel saw its net and operating income dip by 134% year on year, it still performed better than analysts expected.
The expected loss per share was $0.15, but Intel came out at only $0.04. Much of the losses were anticipated, with Intel undergoing restructuring charges and extensive share-based compensation, among other costs.
On the positive side, Intel’s Mobileye department reported 16% growth year on year to $458 million as it jumps on the driverless vehicle hype.
Intel’s AXG division still intends to challenge Nvidia and AMD in the graphics card industry. It’s just appointed a new CVP and GM, Deepak Patil. Let’s see how that goes.
Snap: Not looking so snappy
Snap saw its first quarterly revenue fall since becoming a public company.
The parent company of Snapchat reported Q1 revenue of $989 million, down 7% year on year. Its average revenue per user was $2.58 compared to the anticipated $2.63.
It also reported a net loss of $329 million, but that’s an improvement over last year’s $360 million.
Snap put their poor revenue down to ad changes, which the company warned about in forecasts last year. Apple’s data changes have impacted advertising, so companies are carefully planning their marketing efforts.
TikTok is a serious competitor with over a billion monthly users compared to Snapchat’s 750 million. Plus, Tiktok’s ads are 62% cheaper, so it’s no surprise Snap’s taken a hit.
Cloudflare: Soaring high
Cloudflare reported some remarkable figures for Q1.
The Zacks Consensus Estimate for earnings per share was 4 cents, but Cloudflare smashed earnings out of the park with 8 cents per share. Its bottom line saw a huge improvement of 700% year on year.
Still, revenues narrowly missed estimates by $0.8 million, as Cloudflare reported Q1 revenues of $290.2 million. That’s still a 37% increase from this time last year.
Cloudflare’s shift to a subscription-based model and impressive client retention rate has certainly helped its earnings. Q1 saw 168,159 paying customers, an increase of 13%.
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