The revenue of $26.8 billion went down by 5% yearover-year or down 2% in constant currency. Despite
currency headwinds and even after increasing R&D investments, they improved profitability year-overyear. Gross margin was 23.4% up 0.6 points yearover-year and quarter-over-quarter gross margin was down 1.2 points in line with normal seasonality.
Non-GAAP operating profit was 8.8% up 0.3 points year-over-year. HPQ nearing the completion of their 2012 restructuring plan.
The non-GAAP diluted net earnings per share of $0.92 primarily excludes pre-tax charges of $222 million for amortization of intangible assets, a $146 million for restructuring and $80 million associated with the separation. Including these charges GAAP diluted net
earnings per share for Q1 was $0.73 in line with their previously provided outlook of $0.72 to $0.76 per share.
Groupon's SG&A percentage is connected to two issues. First, the company's fast expansion of the Goods business. Second, the high cost of dealing with local merchants and the sales process in the Deals business. However, as the Goods business begins to mature and gain economies of scale, these costs should decline. In a similar manner, as Groupon's Deals business becomes a smaller part of the whole, this divisions costs should mitigate as well. Solving its selling, general, and administrative expense issues will be good for investors.
Compared to Groupon's SG&A expense, Amazon and eBay spend significantly less in this area. In their respective quarters, Amazon spent about 24% on SG&A, whereas eBay spent just under 34%. More traditional retailers like Wal-Mart spend as little as 20% on this same line item.
Revenue for the fourth quarter of 2014 totaled $479 million, an increase of 97% compared to $243 million in the same period in 2013. Drilling down, show that advertising revenue totaled $432 million, an increase of 97% year-over-year. Mobile advertising revenue was 88% of total advertising revenue. Data licensing and other revenue totaled $47 million, an increase of 105% year-over-year. Most of the income came from USA while International revenue totaled $164 million, an increase of 149% year-over-year.
The adjusted EBITDA was $141 million for the fourth quarter of 2014, an increase of 216% compared to $45 million in the same period in 2013.
BRAVO!!!
RED FLAG - the company 'Cash and cash equivalents' went down from $803 millions in 2013 to $460 millions in 2014. on the other hand, the 'Marketable securities' went up from 1.5 billion dollars to 3 billion dollars on the last year. which makes you wonder: why a High-Tech company invest in the stock market, while loosing money on their operating. I would prefer to see them using the cash to invest in the company and not in the stock market.
The net income of the company more than doubled it self in 2014, comparing to 2013, even though the selling went up "only" at 40%. there are few reasons for that: (1) The gross profit % out of revenue jumped to 45% in 2014 (was 36% in 2013). (2) The Go-Pro cameras became much better and more advanced (Research and development more than doubled). (3) They continue to invest a lot of money in marketing. See the last deal with NFL for example.
Though Google reported disappointing revenue growth in the fourth quarter amid further indications of slowing growth in its search-advertising business. I believe that the most important numbers in this report were the movement of the revenue from "Advertising revenue" to "Other Revenue". It's important to say that both of them grew, but the income for other sources is wonderful news, since Google can't relay on this 1 soucrse income for ever.
While it seems that Amazon fully completed their potential in USA, they continue to shift east (UK and Europe) and far East (India and China). Just imagine how much power Amazon will have serving 3 billion people and not only 300 millions. We do need to remember though that USA population are more likely to spend money, specially on the Web, but their shift to the east is great move, that will bring much value to the stock, throughout the time.
Facebook doubled their net income in one year which is impressive, but I truly think that they are overpriced for the following reasons:
their Market Cap is $209 Billions while their Net income is $3 billions, which means: Net income multiplier of 70!!! why higher than normal. The EV/EBITDA is 31.85, comparing to 17.08 in Google, 31.62 in amazon, 43.61 in Alibaba, and 8.05 in Microsoft. I truly believe that it's better to sell FB and AMZN and buy GOOG and MSFT, which are much cheaper.
Seems like MSFT will have to find new ways of making money besides windows and office. Since WIN 10 is going to be given free for most users. Concerning the Office: I believe that many users will get used to the google docs idea, in few years, specially after google will upgrade their system more and more.
I'll sum up and will say that MSFT need to find new "cash cows"!
When checking the real value of Yahoo, the Equity value of Yahoo without Alibaba for different period of times in the last 2 years was 0 or negative. There is no doubt the coming spin-off will differ the value of Yahoo from ali-baba, and therefore will be good for the shareholders.
Apple posted earnings of $18 billion on $74.6 billion in revenue, far above what it forecasted back in October, and marking the highest quarterly profit in its history! The % gross margin is 39.9% this quarter comparing to 37.9% on quarter.
The company is making less money on each of their services which is a very bad news for the company, specially when it's on every single service they have.
The only good point on the Revenue data is the fact that the gross profit is higher, which mean: They sold less, but the profit loss was little bit lower.
GoPro show a tremendous growth in the revenue. They grow in 14% in the last three months (60% on a yearly pace) and 46% since last september. GoPro also continue to improve their gross profitability (33% in Q32013 to 44% in Q32014).
Finally, maybe the best news of this report, is the fact the GoPro started to show positive net income!