This week saw the biggest tech companies in the world disclose their earnings for third calendar quarter of 2020. Microsoft’s financial data was released earlier this week, followed by Facebook, Amazon, Google and Apple yesterday,
Across the board, the numbers were solid, often beating analysts’ expectations.
Here’s how each of them did.
FacebookThe social media giant saw a solid quarter, though its daily active userbase in the US and Canada did decline.
Here are the key figures, as well as what Wall Street was expecting (as per Business Insider):
- Revenue: $21.47 billion, up 22% year-on-year ($19.84 billion expected)
- Net income: $7.846 billion, up 29% year-on-year from $ 6.091 billion
- Daily Active Users: 1.82 billion, up 12% year-on-year (1.78 billion expected)
- Monthly Active Users: 2.74 billion, up 12% year-on-year (2.70 billion expected)
- Earnings Per Share (EPS) GAAP: $2.71 ($1.91 expected)
It has been no secret that Amazon has been amongst the companies most to benefit from the pandemic. Its results from the third quarter show just that:
- Operating cash flow increased 56% to $55.3 billion for the trailing twelve months, compared with $35.3 billion for the trailing twelve months ended September 30, 2019.
- Free cash flow increased to $29.5 billion for the trailing twelve months, compared with $23.5 billion for the trailing twelve months ended September 30, 2019.
- Net sales increased 37% to $96.1 billion in the third quarter, compared with $70.0 billion in third quarter 2019. Excluding the $691 million favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 36% compared with third quarter 2019.
- Operating income increased to $6.2 billion in the third quarter, compared with operating income of $3.2 billion in third quarter 2019.
- Net income increased to $6.3 billion in the third quarter, or $12.37 per diluted share, compared with net income of $2.1 billion, or $4.23 per diluted share, in third quarter 2019.
Alphabet/GoogleGoogle’s parent company Alphabet showed an overall comeback in this quarter’s data, following an underwhelming Q2 2020, with advertising showing a resurgence.
- Revenue: $46.1 billion, up from $40.5 billion in Q3 2019
- Net income: $11.3 billion, up from $7 billion in Q3 2019
- Earnings per share: $16.40, up from $10.12
- Google search and Other (advertising): $26.4 billion, up from $24.7 billion in Q3 2019
- YouTube ads: $5 billion, up from $3.8 billion in Q3 2019
- Google Cloud: $3.4 billion, up form $2.4 billion in Q3 2019
- Google Other (which includes hardware like its Pixel phones): $5.5 billion, up from $4 billion in Q3 2019
- Other Bets: (e.g. autonomous vehicle startup Waymo, Verily): $178 million, up from $155 million in Q3 2019
Apple’s earnings data from calendar Q3 2020/its fiscal Q4 2020 saw the company set a new revenue record for September, even without iPhone 12 sales to back them up like they usually would during the quarter. Things are different this year because Apple decided to release its new iPhone lineup this year in October instead of September.
Here’s the key data:
- Revenue: 64.7 billion, up from $64 billion in Q3 2019 (the quarter when the latest iPhone had released)
- Net income: $12.67 billion, down from $13.69 billion in Q3 2019
- Cash on hand: $191.83 billion, down from $205.9 billion in Q3 2020
- Earnings per share: $0.73, compared to $0.76 in Q3 2019
Revenue by product category, as compiled by 9to5mac:
- $26.44 billion: iPhone (down from $33.36 billion in Q4 2019)
- $14.55 billion: Services (up from $12.5 billion in Q4 2019)
- $9.03 billion: Mac (up from $6.99 billion in Q4 2019)
- $7.88 billion: Wearables, Home, and Accessories (up from $6.52 billion in Q4 2019)
- $6.79 billion: iPad (up from $4.66 billion in Q4 2019)