Turbotodd

Ruminations on IT, the digital media, and some golf thrown in for good measure.

Archive for the ‘earnings’ Category

IBM Reports 1Q2017 Financial Results

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IBM today announced first-quarter earnings results for 2017.

Highlights included:

  • Diluted EPS from continuing operations: GAAP of $1.85; Operating (non-GAAP) of $2.38
  • Revenue from continuing operations of $18.2 billion
  • Strategic imperatives revenue of $7.8 billion in the quarter, up 12 percent (up 13 percent adjusting for currency)
  • Strategic imperatives revenue of $33.6 billion over the last 12 months represents 42 percent of IBM revenue
  • Cloud revenue of $14.6 billion over the last 12 months
  • Cloud as-a-Service annual exit run rate of $8.6 billion in the quarter, up 59 percent year to year (up 61 percent adjusting for currency)
  • Maintains full-year EPS and free cash flow expectations.

 

“In the first quarter, both the IBM Cloud and our cognitive solutions again grew strongly, which fueled robust performance in our strategic imperatives,” said Ginni Rometty, IBM chairman, president and chief executive officer.  “In addition, we are developing and bringing to market emerging technologies such as blockchain and quantum, revolutionizing how enterprises will tackle complex business problems in the years ahead.”

You can see the full announcement here.

Written by turbotodd

April 18, 2017 at 3:11 pm

A Public Snap

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Tech earnings season kicked into high gear this week. A few synthesized highlights…

Apple reported $78.4B in Q1 2017 revenue, with 78.3M iPhones sold and a 19% decline in iPad sales. Apple said developers earned $20B from the App Store in 2016, a 40% increase.

Microsoft reported Q2 revenue of $26.1B, indicating Office 365 revenue grew 10% for the quarter. Microsoft indicated its Azure revenue increased 116% in the most recent quarter, “doubling usage.” Surface was down 2% YOY, Phone revenue down 81%.

Facebook reported Q4 revenue of $8.81B, indicating its mobile ad revenue was on a trajectory of bringing in 84% of all ad revenue. Their Monthly Active Users was 1.86B, up 3.91% for the quarter, and last quarter the company said it’s expecting to run out of ad space in mid-2017. It’s not clear whether this sent digital media buyers everywhere scurrying or not.

Amazon reported Q4 revenue of $43.7B, up 22% YOY, and AWS continued to chug forward growing at 47% and delivering revenue of $3.53B. AWS noted it had migrated more than 18K databases using the company’s service in 2016. Echo sales were up 9X compared to last holiday season. “Alexa, crank up the volume.”

And finally, there’s Snap (formerly known as Snapchat). TechCrunch reported their official IPO filing has their revenues at $404M in 2016 with some 158M daily users. That was 500% YOY growth, according to its S-1, but that also incurred a $513M net loss. But Snap has asserted it has a very aggressive “time spent per user” and has strong international growth in Western Europe and Australia. It also recently introduced its Ads API to widen the aperture on its advertising efforts. Its IPO is expected to be the largest tech float since Alibaba in 2014.

Written by turbotodd

February 3, 2017 at 9:16 am

IBM 4Q 2012 Earnings Rise On Software Sales

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IBM announced this afternoon fourth-quarter 2012 diluted earnings of $5.13 per share, compared with diluted earnings of $4.62 per share in the fourth quarter of 2011, an increase of 11 percent.

Fourth-quarter net income was $5.8 billion compared with $5.5 billion in the fourth quarter of 2011, an increase of 6 percent. Total revenues for the fourth quarter of 2012 of $29.3 billion decreased 1 percent (flat adjusting for currency) from the fourth quarter of 2011.

“We achieved record profit, earnings per share and free cash flow in 2012. Our performance in the fourth quarter and for the full year was driven by our strategic growth initiatives — growth markets, analytics, cloud computing, Smarter Planet solutions — which support our continued shift to higher-value businesses,” said Ginni Rometty, IBM chairman, president and chief executive officer.

“Looking ahead, we continue to invest to deliver innovations for the enterprise in key areas such as big data, mobile solutions, social business and security, while expanding into new markets and reaching new clients. We are well on track toward our long-term roadmap for operating EPS of at least $20 in 2015.”

Following are key details of 4Q 2012 earnings:

Fourth-Quarter 2012

Diluted EPS:

GAAP: $5.13, up 11 percent;

Operating (non-GAAP): $5.39, up 14 percent;

Net income:

GAAP: $5.8 billion, up 6 percent;

Operating (non-GAAP): $6.1 billion, up 10 percent;

Gross profit margin:

GAAP: 51.8 percent, up 1.8 points;

Operating (non-GAAP): 52.3 percent, up 2.1 points;

Revenue of $29.3 billion, down 1 percent, flat adjusting for currency:

Up 1 percent excluding divested RSS business adjusting for currency;

Free cash flow of $9.5 billion, up $0.6 billion;

Software revenue up 3 percent, up 4 percent adjusting for currency;

Services revenue down 2 percent, down 1 percent adjusting for currency;

Services backlog of $140 billion, flat, up $1 billion adjusting for currency;

Systems and Technology revenue down 1 percent, up 4 percent excluding RSS:

System z mainframe up 56 percent.

Full Year 2012

Diluted EPS, up double-digits for 10th consecutive year:

GAAP: $14.37, up 10 percent;

Operating (non-GAAP): $15.25, up 13 percent;

Net income:

GAAP: $16.6 billion, up 5 percent;

Operating (non-GAAP): $17.6 billion, up 8 percent;

Revenue of $104.5 billion, down 2 percent, flat adjusting for currency;

Free cash flow of $18.2 billion, up $1.6 billion;

Growth markets revenue up 4 percent, up 7 percent adjusting for currency:

BRIC countries up 7 percent, up 12 percent adjusting for currency;

Business analytics revenue up 13 percent;

Smarter Planet revenue up more than 25 percent;

Cloud revenue up 80 percent.

Full-Year 2013 Expectation:

GAAP EPS of at least $15.53 and operating (non-GAAP) EPS of at least $16.70.

Written by turbotodd

January 22, 2013 at 9:45 pm

IBM Announces 3Q 2012 Earnings

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IBM’s 3Q 2012 earnings were just announced, with diluted earnings of $3.33 per share, a year-to-year increase of 4 percent, or $3.44 per share, up 8 percent excluding the impact of UK pension-related charges.

Operating (non-GAAP) diluted earnings were $3.62 per share, compared with operating diluted earnings of $3.28 per share in the third quarter of 2011, an increase of 10 percent.

Total revenues for the third quarter of 2012 of $24.7 billion were down 5 percent (down 2 percent, adjusting for currency) from the third quarter of 2011. Currency negatively impacted revenue growth by nearly $1 billion.

IBM chairman, president, and CEO Ginny Rometty had this to say about the quarter’s financial performance: “In the third quarter, we continued to drive margin, profit, and earnings growth through our focus on higher-value businesses, strategic growth initiatives, and productivity.

“Looking ahead, we see good opportunity with a strong product lineup heading into this quarter and annuity businesses that provide a solid base of revenue, profit, and cash. We are reiterating our full-year 2012 operating earnings per share expectation of at least $15.10.”

Following are further highlights from the quarter:

Diluted EPS:

  • GAAP: $3.33, up 4 percent; $3.44, up 8 percent excluding UK pension-related charges;
  • Operating (non-GAAP): $3.62, up 10 percent;

Net income:

  • GAAP: $3.8 billion, flat; $3.9 billion, up 3 percent excluding UK pension-related charges;
  • Operating (non-GAAP): $4.2 billion, up 5 percent;

Gross profit margin:

  • GAAP: 47.4 percent, up 0.9 points;
  • Operating (non-GAAP): 48.1 percent, up 1.2 points;

Revenue: $24.7 billion, down 5 percent, down 2 percent adjusting for currency;

  • Negative currency impact of nearly $1 billion;
  • Divestiture of Retail Store Solutions (RSS) reduced revenue by 1 percent;

Software revenue down 1 percent, up 3 percent adjusting for currency;

Services revenue down 5 percent, flat adjusting for currency;

Services backlog of $138 billion, up 1 percent;

Systems and Technology revenue down 13 percent, down 12 percent adjusting for currency;

Growth markets revenue down 1 percent, up 4 percent adjusting for currency;

  • BRIC countries up 4 percent, up 11 percent adjusting for currency;

Business analytics revenue up 14 percent year to date;

Smarter Planet revenue up more than 20 percent year to date

Cloud revenue year to date has exceeded full-year 2011 revenue;

Reiterating full-year 2012 operating (non-GAAP) EPS expectation of at least $15.10.

Written by turbotodd

October 16, 2012 at 8:38 pm

Bada Bada Bing

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How can Microsoft get more bang out of Bing?

By hiring Burson-Marsteller PR firm CEO and former Hilary Clinton campaign loyalist, Mark Penn, the well-known strategist and political pollster.

According to the Wall Street Journal “Digits” blog, Penn is being brought in to help ignite “more consumer use of Bing,” Microsoft’s search engine, which lags well behind Google in terms of search market share.

When examining the earnings results from both Microsoft *and* Google this afternoon, it seems that Microsoft needs all the help it can muster in this particular battle.

Microsoft posted a $492 million loss for fiscal 4Q 2012, largely due to a $6.19 billion writedown of its failed acquisition of advertising-service engine aQuantive.

Google, on the other hand, seems to continue to act second only to the Federal Reserve when it comes to printing money, bringing in $1.25 billion in revenue for the quarter, and realizing a 42% rise in paid clicks year-over-year.

However, it seems Microsoft isn’t the only one out looking for some PR help.  Penn’s firm, Burson-Marsteller just released a study of how Global Fortune 100 companies are using social media (conducted in partnership with Visible Technologies) to create more influence.

First, the top most-often mentioned companies on social media in that group: HP, Ford, Sony, AT&T, Samsung, Toyota, Honda, Walmart, BP, and Verizon.

The study examined some key social media vehicles, including Twitter, Facebook, YouTube, Google+, and Pinterest.

CNET broke down the five key findings of the study:

  1. The Fortune Global 100 were mentioned a totla of 10,400,132 times online in a single month. Gone are the days that companies and brands could tally and sort through all of their media mentions each morning.
  2. Video content creation is on the rise, and there was a 39 percent jump in the percentage of companies with a branded YouTube channel in the last year (and excluding ALL skateboarding bulldogs!).
  3. Engagement is becoming second nature to companies. Seventy-nine percent of corporate accounts on Twitter attempt to engage with other users by retweeting and using @mentions.
  4. Multiple accounts on social media platforms allow companies to target audiences by geography, topic, or service.
  5. Companies are rapidly adapting to new platforms. Google Plus pages for businesses were launched last November, and by February 2012, nearly half (48%) of Fortune Global 100 companies already had a presence on the platform.

The study also highlighted that 93 percent of the Global Fortune 100 companies’ Facebook pages are updated weekly, up from 84 percent and 59 percent each of the past two years.

I’ll add my own two cents, considering IBM is a member of that Fortune Global 100.  In our own Facebook research, for example, we, too, have found video to be an increasingly impactful online resource.

We’re also seeing that the more data we share, the more interest we garner in terms of reshares (infographics are also impactful, but need to be used smartly and selectively).

That is to say, the more useful and insightful data an organization can share through its social media activities, the more they’re able to rise above the information overload fray and present prospects with “news they can use.”

No matter which famous political PR flack they hire.

Written by turbotodd

July 19, 2012 at 9:55 pm

IBM 2Q 2012 Earnings: $3.51 EPS (Up 14% YOY), $25.8 Billion Revenue

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IBM 2012 second quarter earnings were just released, and IBM’s operating earnings per share (non-GAAP) came in above expectations at $3.51/share, a 14 percent increase YOY.

Revenue came in at $25.8 billion, down 3 percent YOY, but up 1 percent YOY when adjusted for common currency.

Operating net income was $4.1 billion, up 8 percent YOY, and free cash flow came in at $3.7 billion, up 9 percent YOY.

Second quarter segment highlights included software revenue led by Europe, Japan and the growth markets, and services profit, which was up 18 percent (with the services backlog flat at constant currency).

IBM’s software business reported revenues of $6.2 billion, which were up 4 percent when adjusted for common currency.

Once again, the WebSphere brand led the way, coming in at 3 percent growth YOY (7 percent when adjusted for common currency).

The Tivoli brand grew 2 percent YOY, 6 percent when adjusted for common currency. Overall gross margins for the software business were flat at 88.4 percent, but pre-tax income was $2.5 billion, up some 8 percent YOY.

IBM’s Systems and Technology group revenues were negatively impacted by the product cycle, coming in down 9 percent YOY, but STG gained share in the POWER systems segment.

IBM saw continued strength in its growth initiatives, with growth markets realizing YTD revenue growth of 9 percent YOY when adjusted for constant currency, and its business analytics business up 13 percent YOY.

Cloud computing revenue doubled YOY, and Smarter Planet revenue grew by over 20 percent YOY.

IBM’s annuity business provided a solid base of revenue, profit, and cash, and productivity initiatives drove structural improvements and helped contribute to IBM’s margin expansion.

Following is what IBM CEO Ginny Rometty had to say about IBM’s 2Q 2012 earnings:

“In the second quarter, we delivered strong profit, earnings per share and free cash flow growth. This performance reflects continued strength in our growth initiatives and investments in higher value opportunities,” said Ginni Rometty, IBM president and chief executive officer. “These are fundamental elements of our long-term business model.

“Looking ahead, we are well positioned to deliver greater value to a wider range of clients and to our shareholders. Given our performance in the first half and our outlook for the second half, we are raising our full-year operating earnings per share expectations to at least $15.10.”

Written by turbotodd

July 18, 2012 at 8:35 pm

Into The Amazon Digital Jungle

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Whoa, what ants got into Amazon.com’s pants this quarter??

Amazon announced earnings earlier today, and though profits for the first quarter dropped 35 percent to $130 million from last year’s same quarter, revenue jumped 34 percent to $13.2 billion, beating the Street’s expectations.

Is this a bellwether indicator for e-commerce en generale, or is it isolated to the ‘Zon?

Hard to say, but The Wall Street Journal is reporting that part of Amazon’s spending has gone towards making itself operate more efficiently.  If you remember, Amazon spent a cool $775 million to buy Kiva Systems last month, which is intended to help them automate and lower their warehouse operations costs.

The Journal story’s also highlighting the fact that the e-commerce market in general “has been strong,” with Amazon reporting particularly good sales for digital goods, including e-books and online video (which, read, means little to no distribution costs other than bandwidth!)

In Amazon’s earnings press release, Amazon pointed out that “9 out of 10 top sellers on Amazon.com were digital products — Kindle, Kindle books, movies, music and apps.”

In the quarter, Amazon also introduced a new version of its Kindle for iPad app, which is the #5 free iPad app of all time and the #1 free books app on iPad.

The Amazon left jab strikes Apple on the chin! Pow!

The Kindle, retailing for $199 through Amazon, continues to be the company’s best-selling product, and the most “gifted.”

I may have even contributed to the strong quarter with a few Amazon purchases meself, come to think of it!

For my money (what little I have left of it after shopping with Amazon), this digital trend is a larger barometric indicator — folks are finally getting more comfortable with consuming books and other media in digital formats, and though it certainly has a negative impact on the “traditional” media industries on one side of the balance sheet, that starts to get offset as the digital column increases.

Of course, I haven’t even gotten to some of the social commerce trends which Amazon is also likely benefiting from (mentions via Facebook, Twitter, etc.) and their own leading adoption of customer ratings and reviews.

Click, mortar, AND pixels is the name of the game for smarter commerce, something IBM thought leaders will be discussing at the upcoming IBM Global Smarter Commerce Summit in Madrid May 22-24th.

More on that in a prior post here.

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