Is Qualcomm Stock a Buy Now?

Qualcomm’s (QCOM 2.23%) stock tumbled nearly 8% during after-hours trading on Nov. 2 in response to its latest earnings report. For the fourth quarter of fiscal 2022, which ended on Sept. 25, the chipmaker’s non-GAAP revenue rose 22% year-over-year to $11.39 billion, which beat analysts’ estimates by $40 million. Its adjusted earnings increased 23% to $3.13 per share, which matched the consensus forecast.

Qualcomm’s growth rates seem robust, but they represent a significant deceleration from previous quarters. The company’s downbeat outlook for the upcoming fiscal year also shattered investors’ hopes for a quick recovery. Let’s take a closer look at Qualcomm’s slowdown, its near-term challenges, and whether or not it’s still worth buying in this rough market for semiconductor stocks.

A person points to a smartphone.

Image source: Getty Images.

Grappling with slower smartphone sales

Qualcomm is one of the world’s largest producers of mobile system-on-chips (SoCs) and baseband modems. It also owns a massive portfolio of wireless patents, which entitles it to a cut of every mobile device sold worldwide. Therefore, Qualcomm is heavily dependent on the smartphone market, which has cooled off lately due to severe COVID-19 restrictions in China, sluggish consumer spending amid high inflation, and lackluster sales following last year’s 5G upgrade cycle. During the conference call, CFO Akash Palkhiwala warned that “rapid deterioration in demand and easing of supply constraints across the semiconductor industry have resulted in elevated channel inventory.” In other words: Smartphone makers simply don’t need as many chips anymore.

85% of Qualcomm’s $44.17 billion in fiscal 2022 revenue came from its chipmaking segment, while the remaining 15% of total revenue came from the company’s licensing unit. Here’s a breakdown of how these two core businesses fared over the past year:

Metric

Q4 2021

Q1 2022

Q2 2022

Q3 2022

Q4 2022

Chipmaking Revenue Growth (YOY)

56%

35%

52%

45%

28%

Licensing Revenue Growth (YOY)

3%

10%

(2%)

2%

(8%)

Total Revenue Growth (YOY)

43%

30%

41%

37%

22%

Data source: Qualcomm. *Non-GAAP basis. YOY = Year-over-year.

Qualcomm’s chipmaking business lost its momentum in the second half of fiscal 2022 as its slowing sales of smartphone SoCs, which still accounted for two-thirds of the segment’s full-year revenues, offset its accelerating growth in automotive chips, which only brought in 4.3% of its chipmaking revenues. That’s why its higher-margin licensing business, which still relies heavily on smartphone sales, also ground to a halt. Qualcomm doesn’t expect that pressure to ease anytime soon: Management reduced calendar year 2022 guidance for 3G/4G/5G handset volume growth from a mid-single-digit decline to a double-digit decline.

Management expects fiscal 2023’s first quarter revenue to be 6.5%-14% less than the $10.7 billion brought in during the year-ago period. Qualcomm predicts revenue in the upcoming quarter will drop 6%-13% year over year for the chipmaking segment and 9%-20% year over year fro the licensing segment. It’s anticipated that adjusted earnings per share (EPS) will slump 24%-30%, broadly missing analysts’ original expectations for 6% growth.

How long will this downturn last?

During the conference call, CEO Cristiano Amon warned that Qualcomm would likely struggle with the “further deterioration of the macroeconomic environment and extended China COVID restrictions” throughout fiscal 2023. But he also noted that the company wouldn’t lose “sight of the significant growth opportunities ahead,” as it scales up its automotive and non-handset IoT (Internet of Things) chipmaking divisions to reduce dependence on the saturated and cyclical smartphone market.

Unfortunately, I don’t see Qualcomm transforming into Texas Instruments (TXN 1.46%), which has a lot more exposure to the growing automotive market and limited exposure to the sluggish smartphone market, anytime soon. Qualcomm still generates two-thirds of its chipmaking revenue from smartphone SoCs, while its smaller front-end RF and consumer IoT chip businesses still partly rely on the smartphone market. It also faces stiff competition in the automotive market, which it’s pinning its future hopes on, from other chipmakers like Nvidia (NVDA 2.10%) and Mobileye (MBLY 1.20%).

Those diversification plans are further complicated by the chipmaker’s relationship with Apple (AAPL 0.42%), its leading customer which accounted for over 10% of Qualcomm’s fiscal 2022 revenues. Qualcomm originally expected to supply about 20% of Apple’s baseband modems for its next iPhone, which will likely launch next September, but it now expects to supply the “vast majority” of those modems. It only expects to generate a “minimal” amount of revenue from Apple by fiscal 2025 after that deal ends, but it’s unclear if its non-smartphone chipmaking segments can sufficiently fill that void.

Is Qualcomm’s stock too cheap to ignore?

Analysts expect Qualcomm’s revenue and adjusted EPS to grow 5% and 2%, respectively, in fiscal 2023. Based on those estimates, Qualcomm’s stock still looks cheap at just 9 times forward earnings. But I believe those estimates are still too high in light of its latest report, so its actual forward valuation might be a bit higher. Its forward yield of 2.6% looks decent, but it also won’t attract any serious income investors as long as the three-month treasury’s yield exceeds 4%.

Simply put, Qualcomm’s stock isn’t a screaming bargain yet. Investors would arguably be better off investing in a better-diversified chipmaker like Texas Instruments than Qualcomm, which remains tightly tethered to the cyclical smartphone market, as the bear market drags on.

Leo Sun has positions in Apple and Qualcomm. The Motley Fool has positions in and recommends Apple, Qualcomm, and Texas Instruments. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.

85% of Qualcomm’s $44.17 billion in fiscal 2022 revenue came from its chipmaking segment, while the remaining 15% of total revenue came from the company’s licensing unit. Here’s a breakdown of how these two core businesses fared over the past year:

Source: https://www.fool.com/investing/2022/11/08/is-qualcomm-stock-a-buy-now/

Block, Paypal, Twilio, Atlassian, Doordash: Why These Stocks Moved Significantly In Afterhours Trading Today – PayPal Holdings (NASDAQ:PYPL), Block (NYSE:SQ)

Stocks and bonds in the U.S. took a hit on Thursday, continuing their response to the Federal Reserve’s hawkish stance. The S&P 500 and the Nasdaq closed over 1% lower, while yields on U.S. Treasuries across the curve saw a spike. Meanwhile, here are five stocks that witnessed significant movement in after-hours trading on Thursday.

1. Atlassian Corp TEAM: Shares of the software maker fell over 22% in extended trading on Thursday after the company reported earnings. Atlassian reported a 31% rise in its revenue at $807.4 million, while its net loss stood at $13.7 million for the September quarter, compared with a net loss of $411.2 million from a year earlier. The company has guided total revenue for the next quarter to be $835 million to $855 million against a Wall Street estimate of $879.4 million, according to Benzinga Analyst Stock Ratings Tool.

Also Read: Investing For Beginners

2. Twilio Inc TWLO: Shares of Twilio fell over 21% in after-hours trading on Thursday after the software maker reported a 33% rise in third-quarter revenue but GAAP loss from operations widening to $457 million from $232.3 million from a year earlier. The company has projected fourth-quarter revenue of $995 million to $1.005 billion, compared with an estimate of $1.07 billion, according to Benzinga Analyst Stock Ratings Tool.

3. Block Inc SQ: Shares of Block rose over 12% in extended trading on Thursday after the company reported a strong set of third-quarter earnings. Its net revenue for the third quarter rose 17% year-over-year to $4.52 billion. Cash App generated a gross profit of $774 million, up 51% year-over-year.

4. DoorDash Inc DASH: Online food delivery platform DoorDash’s shares rose over 11% in extended trading on Thursday after its revenues and sales beat expectations. The company’s revenue increased 33% during the quarter to $1.7 billion while its total orders increased 27% to 439 million in Q3.

5. PayPal Holdings Inc PYPL: PayPal shares fell over 9% in extended trading after the company’s guidance disappointed the Street. PayPal has guided an 8.5% growth in its net revenue for the full year to about $27.5 billion. According to a report by the Wall Street Journal, the company had earlier projected full-year revenue growth of 18%.

Read Next: Coinbase Q3 Earnings Recap: Revenue And EPS Miss, Monthly Users Fall Less Than Robinhood, Stock Jumps

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

4. DoorDash Inc DASH: Online food delivery platform DoorDash’s shares rose over 11% in extended trading on Thursday after its revenues and sales beat expectations. The company’s revenue increased 33% during the quarter to $1.7 billion while its total orders increased 27% to 439 million in Q3.

Source: https://www.benzinga.com/news/earnings/22/11/29561155/block-paypal-twilio-atlassian-doordash-why-these-stocks-moved-significantly-in-afterhours-trading-t

Meta Reports Third Quarter 2022 Results

, /PRNewswire/ — Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended September 30, 2022.

(PRNewsfoto/Meta)

“Our community continues to grow and I’m pleased with the strong engagement we’re seeing driven by progress on our discovery engine and products like Reels,” said Mark Zuckerberg, Meta founder and CEO. “While we face near-term challenges on revenue, the fundamentals are there for a return to stronger revenue growth. We’re approaching 2023 with a focus on prioritization and efficiency that will help us navigate the current environment and emerge an even stronger company.”

Third Quarter 2022 Financial Highlights

Three Months Ended September 30, % Change In millions, except percentages and per share amounts 2022 2021 Revenue $ 27,714 $ 29,010 (4) % Costs and expenses 22,050 18,587 19 % Income from operations $ 5,664 $ 10,423 (46) % Operating margin 20 % 36 % Provision for income taxes $ 1,181 $ 1,371 (14) % Effective tax rate 21 % 13 % Net income $ 4,395 $ 9,194 (52) % Diluted earnings per share (EPS) $ 1.64 $ 3.22 (49) %

Third Quarter 2022 Operational and Other Financial Highlights

  • Family daily active people (DAP) – DAP was 2.93 billion on average for September 2022, an increase of 4% year-over-year.
  • Family monthly active people (MAP) – MAP was 3.71 billion as of September 30, 2022, an increase of 4% year-over-year.
  • Facebook daily active users (DAUs) – DAUs were 1.98 billion on average for September 2022, an increase of 3% year-over-year.
  • Facebook monthly active users (MAUs) – MAUs were 2.96 billion as of September 30, 2022, an increase of 2% year-over-year.
  • Ad impressions and price per ad – In the third quarter of 2022, ad impressions delivered across our Family of Apps increased by 17% year-over-year and the average price per ad decreased by 18% year-over-year.
  • Revenue – Revenue was $27.71 billion, a decrease of 4% year-over-year, and an increase of 2% year-over-year on a constant currency basis. Had foreign exchange rates remained constant with the third quarter of 2021, revenue would have been $1.79 billion higher.
  • Costs and expenses – Total costs and expenses were $22.05 billion, an increase of 19% year-over-year. This includes an impairment loss of $413 million for certain operating leases as part of our ongoing work to align our office facilities footprint with our anticipated operating needs.
  • Capital expenditures – Capital expenditures, including principal payments on finance leases, were $9.52 billion for the third quarter of 2022.
  • Share repurchases – We repurchased $6.55 billion of our Class A common stock in the third quarter of 2022. As of September 30, 2022, we had $17.78 billion available and authorized for repurchases.
  • Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $41.78 billion as of September 30, 2022.
  • Long-term debt – Long-term debt was $9.92 billion as of September 30, 2022.
  • Headcount – Headcount was 87,314 as of September 30, 2022, an increase of 28% year-over-year.

CFO Outlook Commentary

We expect fourth quarter 2022 total revenue to be in the range of $30-32.5 billion. Our guidance assumes foreign currency will be an approximately 7% headwind to year-over-year total revenue growth in the fourth quarter, based on current exchange rates.

To provide some context on the approach we are taking towards setting our 2023 budget, we are making significant changes across the board to operate more efficiently. We are holding some teams flat in terms of headcount, shrinking others and investing headcount growth only in our highest priorities. As a result, we expect headcount at the end of 2023 will be approximately in-line with third quarter 2022 levels.

We have increased scrutiny on all areas of operating expenses. However, these moves follow a substantial investment cycle so they will take time to play out in terms of our overall expense trajectory. Some steps, like the ongoing rationalization of our office footprint, will lead to incremental costs in the near term. This should set us up well for future years, when we expect to return to higher rates of revenue growth.

We expect 2022 total expenses to be in the range of $85-87 billion, updated from our prior outlook of $85-88 billion. This includes an estimated $900 million in additional charges related to consolidating our office facilities footprint that we expect to record in the fourth quarter of 2022. We anticipate our full-year 2023 total expenses will be in the range of $96-101 billion. This includes an estimated $2 billion in charges related to consolidating our office facilities footprint.

We expect the slight majority of our 2023 expense dollar growth to be driven by operating expenses, with the remaining growth coming from cost of revenue. We expect the percentage growth rate of 2023 operating expenses to decelerate meaningfully as we curtail non-headcount related expense growth and keep 2023 headcount roughly flat with current levels. Conversely, our growth in cost of revenue is expected to accelerate, driven by infrastructure-related expenses and, to a lesser extent, Reality Labs hardware costs driven by the launch of our next generation of our consumer Quest headset later next year.

Reality Labs expenses are included in our total expense guidance. We do anticipate that Reality Labs operating losses in 2023 will grow significantly year-over-year. Beyond 2023, we expect to pace Reality Labs investments such that we can achieve our goal of growing overall company operating income in the long run.

We expect 2022 capital expenditures, including principal payments on finance leases, to be in the range of $32-33 billion, updated from our prior range of $30-34 billion. For 2023, we expect capital expenditures to be in the range of $34-39 billion, driven by our investments in data centers, servers, and network infrastructure. An increase in AI capacity is driving substantially all of our capital expenditure growth in 2023.

Absent any changes to U.S. tax law, we expect our fourth quarter 2022 and our full-year 2023 tax rate to be similar to the third quarter 2022 rate.

In addition, as previously noted, we continue to monitor developments regarding the viability of transatlantic data transfers and their potential impact on our European operations.

Webcast and Conference Call Information

Meta will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast of Meta’s earnings conference call can be accessed at investor.fb.com, along with the earnings press release, financial tables, and slide presentation. Meta uses the investor.fb.com and about.fb.com/news/ websites as well as Mark Zuckerberg’s Facebook Page (facebook.com/zuck) and Instagram account (instagram.com/zuck) as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at +1 (800) 633-8284 or +1 (402) 977-9140, conference ID 22020741.

Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.fb.com website.

About Meta

Meta builds technologies that help people connect, find communities, and grow businesses. When Facebook launched in 2004, it changed the way people connect. Apps like Messenger, Instagram, and WhatsApp further empowered billions around the world. Now, Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology.

Contacts

Investors:
Deborah Crawford
investor@meta.com / investor.fb.com

Press:
Ryan Moore
press@meta.com / about.fb.com/news/

Forward-Looking Statements

This press release contains forward-looking statements regarding our future business plans and expectations. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: the impact of macroeconomic conditions on our business and financial results, including as a result of the ongoing COVID-19 pandemic and geopolitical events; our ability to retain or increase users and engagement levels; our reliance on advertising revenue; our dependency on data signals and mobile operating systems, networks, and standards that we do not control; changes to the content or application of third-party policies that impact our advertising practices; risks associated with new products and changes to existing products as well as other new business initiatives, including our metaverse efforts; our emphasis on community growth and engagement and the user experience over short-term financial results; maintaining and enhancing our brand and reputation; our ongoing privacy, safety, security, and content review efforts; competition; risks associated with government actions that could restrict access to our products or impair our ability to sell advertising in certain countries; litigation and government inquiries; privacy, legislative, and regulatory concerns or developments; risks associated with acquisitions; security breaches; and our ability to manage our scale and geographically-dispersed operations. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed with the SEC on July 28, 2022, which is available on our Investor Relations website at investor.fb.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. In addition, please note that the date of this press release is October 26, 2022, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP), we use the following non-GAAP financial measures: revenue excluding foreign exchange effect, advertising revenue excluding foreign exchange effect, and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

We exclude the following items from our non-GAAP financial measures:

Foreign exchange effect on revenue. We translated revenue for the three and nine months ended September 30, 2022 using the prior year’s monthly exchange rates for our settlement or billing currencies other than the U.S. dollar, which we believe is a useful metric that facilitates comparison to our historical performance.

Purchases of property and equipment; Principal payments on finance leases. We subtract both purchases of property and equipment, net of proceeds and principal payments on finance leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we procure such property or equipment with a finance lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the “Reconciliation of GAAP to Non-GAAP Results” table in this press release.

META PLATFORMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In millions, except per share amounts) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Revenue $ 27,714 $ 29,010 $ 84,444 $ 84,258 Costs and expenses: Cost of revenue 5,716 5,771 16,913 16,301 Research and development 9,170 6,316 25,567 17,609 Marketing and sales 3,780 3,554 10,688 9,656 General and administrative 3,384 2,946 8,731 6,524 Total costs and expenses 22,050 18,587 61,899 50,090 Income from operations 5,664 10,423 22,545 34,168 Interest and other income (expense), net (88) 142 125 413 Income before provision for income taxes 5,576 10,565 22,670 34,581 Provision for income taxes 1,181 1,371 4,123 5,496 Net income $ 4,395 $ 9,194 $ 18,547 $ 29,085 Earnings per share attributable to Class A and Class
B common stockholders: Basic $ 1.64 $ 3.27 $ 6.86 $ 10.27 Diluted $ 1.64 $ 3.22 $ 6.82 $ 10.11 Weighted-average shares used to compute earnings
per share attributable to Class A and Class B
common stockholders: Basic 2,682 2,814 2,703 2,832 Diluted 2,687 2,859 2,718 2,876 Share-based compensation expense included in costs
and expenses: Cost of revenue $ 209 $ 147 $ 582 $ 428 Research and development 2,447 1,849 6,995 5,224 Marketing and sales 260 218 766 631 General and administrative 218 165 641 474 Total share-based compensation expense $ 3,134 $ 2,379 $ 8,984 $ 6,757 META PLATFORMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) September 30, 2022 December 31, 2021 Assets Current assets: Cash and cash equivalents $ 14,308 $ 16,601 Marketable securities 27,468 31,397 Accounts receivable, net 11,227 14,039 Prepaid expenses and other current assets 5,312 4,629 Total current assets 58,315 66,666 Non-marketable equity securities 6,528 6,775 Property and equipment, net 73,738 57,809 Operating lease right-of-use assets 13,641 12,155 Intangible assets, net 875 634 Goodwill 20,268 19,197 Other assets 5,529 2,751 Total assets $ 178,894 $ 165,987 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 3,871 $ 4,083 Partners payable 975 1,052 Operating lease liabilities, current 1,291 1,127 Accrued expenses and other current liabilities 16,036 14,312 Deferred revenue and deposits 514 561 Total current liabilities 22,687 21,135 Operating lease liabilities, non-current 14,687 12,746 Long-term debt 9,922 — Other liabilities 7,504 7,227 Total liabilities 54,800 41,108 Commitments and contingencies Stockholders’ equity: Common stock and additional paid-in capital 62,092 55,811 Accumulated other comprehensive loss (5,054) (693) Retained earnings 67,056 69,761 Total stockholders’ equity 124,094 124,879 Total liabilities and stockholders’ equity $ 178,894 $ 165,987 META PLATFORMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2022 2021 2022 2021 Cash flows from operating activities Net income $ 4,395 $ 9,194 $ 18,547 $ 29,085 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,175 1,995 6,310 5,953 Share-based compensation 3,134 2,379 8,984 6,757 Deferred income taxes (1,097) (786) (2,113) (139) Impairment related to leases and leasehold improvements 413 — 413 — Other 104 (73) 71 (161) Changes in assets and liabilities: Accounts receivable (105) (555) 1,930 (1,072) Prepaid expenses and other current assets (830) (253) (693) (2,566) Other assets (27) 11 (160) (184) Accounts payable (22) 694 (666) 560 Partners payable 20 (30) (12) (163) Accrued expenses and other current liabilities 998 1,094 2,942 895 Deferred revenue and deposits (7) 78 (35) 87 Other liabilities 540 343 446 527 Net cash provided by operating activities 9,691 14,091 35,964 39,579 Cash flows from investing activities Purchases of property and equipment (9,375) (4,345) (22,388) (13,290) Proceeds relating to property and equipment 20 32 190 92 Purchases of marketable debt securities (2,597) (7,786) (8,885) (24,314) Sales of marketable debt securities 1,620 8,993 9,333 15,331 Maturities of marketable debt securities 649 2,991 1,562 9,318 Acquisitions of businesses and intangible assets (34) (71) (1,250) (330) Other investing activities 16 (144) (1) (206) Net cash used in investing activities (9,701) (330) (21,439) (13,399) Cash flows from financing activities Taxes paid related to net share settlement of equity awards (1,011) (1,576) (2,938) (4,007) Repurchases of Class A common stock (6,354) (13,457) (21,093) (24,476) Proceeds from issuance of long-term debt, net 9,921 — 9,921 — Principal payments on finance leases (163) (231) (615) (505) Net change in overdraft in cash pooling entities (191) 11 (250) 15 Other financing activities (55) — (101) (13) Net cash provided by (used in) financing activities 2,147 (15,253) (15,076) (28,986) Effect of exchange rate changes on cash, cash equivalents, and restricted cash (364) (215) (1,063) (344) Net increase (decrease) in cash, cash equivalents, and restricted cash 1,773 (1,707) (1,614) (3,150) Cash, cash equivalents, and restricted cash at beginning of the period 13,478 16,511 16,865 17,954 Cash, cash equivalents, and restricted cash at end of the period $ 15,251 $ 14,804 $ 15,251 $ 14,804 Reconciliation of cash, cash equivalents, and restricted cash to
the condensed consolidated balance sheets Cash and cash equivalents $ 14,308 $ 14,496 $ 14,308 $ 14,496 Restricted cash, included in prepaid expenses and other current assets 232 195 232 195 Restricted cash, included in other assets 711 113 711 113 Total cash, cash equivalents, and restricted cash $ 15,251 $ 14,804 $ 15,251 $ 14,804 META PLATFORMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2022 2021 2022 2021 Supplemental cash flow data Cash paid for income taxes, net $ 2,006 $ 1,625 $ 4,647 $ 7,919 Non-cash investing and financing activities: Property and equipment in accounts payable and accrued $ 4,130 $ 2,635 $ 4,130 $ 2,635 Acquisition of businesses in accrued expenses and other current $ 294 $ 73 $ 294 $ 73 Other current assets through financing arrangement in accrued $ 18 $ 491 $ 18 $ 491 Repurchases of Class A common stock in accrued expenses and $ 265 $ 1,223 $ 265 $ 1,223

Segment Results

We report our financial results for our two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes augmented and virtual reality related consumer hardware, software, and content.

The following table presents our segment information of revenue and income (loss) from operations. For comparative purposes, amounts in the prior period have been recast:

Segment Information (In millions) (Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2022 2021 2022 2021 Revenue: Advertising $ 27,237 $ 28,276 $ 82,387 $ 82,294 Other revenue 192 176 624 567 Family of Apps 27,429 28,452 83,011 82,861 Reality Labs 285 558 1,433 1,397 Total revenue $ 27,714 $ 29,010 $ 84,444 $ 84,258 Income (loss) from operations: Family of Apps $ 9,336 $ 13,054 $ 31,983 $ 41,058 Reality Labs (3,672) (2,631) (9,438) (6,890) Total income from operations $ 5,664 $ 10,423 $ 22,545 $ 34,168 Reconciliation of GAAP to Non-GAAP Results (In millions, except percentages) (Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2022 2021 2022 2021 GAAP revenue $ 27,714 $ 29,010 $ 84,444 $ 84,258 Foreign exchange effect on 2022 revenue using 2021 rates 1,789 3,944 Revenue excluding foreign exchange effect $ 29,503 $ 88,388 GAAP revenue year-over-year change % (4) % — % Revenue excluding foreign exchange effect year-over-year change % 2 % 5 % GAAP advertising revenue $ 27,237 $ 28,276 $ 82,387 $ 82,294 Foreign exchange effect on 2022 advertising revenue using 2021 rates 1,776 3,919 Advertising revenue excluding foreign exchange effect $ 29,013 $ 86,306 GAAP advertising revenue year-over-year change % (4) % — % Advertising revenue excluding foreign exchange effect year-over-year change % 3 % 5 % Net cash provided by operating activities $ 9,691 $ 14,091 $ 35,964 $ 39,579 Purchases of property and equipment, net (9,355) (4,313) (22,198) (13,198) Principal payments on finance leases (163) (231) (615) (505) Free cash flow $ 173 $ 9,547 $ 13,151 $ 25,876

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/meta-reports-third-quarter-2022-results-301660429.html

SOURCE Meta

Markets Insider and Business Insider Editorial Teams were not involved in the creation of this post.

Source: https://markets.businessinsider.com/news/stocks/meta-reports-third-quarter-2022-results-1031839728?op=1

PRVA stock hits 52-week high after guidance raise; Q2 beat (NASDAQ:PRVA)

Rolled newspaper with the headline Quarterly Results

Zerbor/iStock via Getty Images

Privia Health (NASDAQ:PRVA), a provider of value-based care, reported better than expected financials for Q2 2022 and raised its full-year outlook sending its shares a 52-week in the morning hours Thursday.

Privia’s (PRVA) revenue for the quarter jumped ~49% YoY to $335.5M as practice collections improved ~67% YoY to $615.5M while value-based care attributed lives gained ~16% YoY ~856K.

As care margin improved ~36% YoY to $76.2M, the net loss for the quarter narrowed to $10.5M from $172.5M in the prior-year quarter when the company recorded $202.6M of non-cash or non-recurring expenses.

Revenue for the first half of the year ~48% YoY to $649.3M, driven by a ~66% YoY growth in practice collections that generated $~$1.2B.

Meanwhile, cash and equivalents fell ~9% from 2021-year end to $292.2M with full repayment of outstanding debt during the quarter.

To reflect the strong performance in the first half and ongoing business momentum, Privia (PRVA) has raised its full-year outlook setting the 2022 revenue estimate at the high end of the previous view.

The company projected ~$1.23B – $1.30 revenue for 2022, initially in line with the current consensus.

Source: https://seekingalpha.com/news/3871711-prva-stock-hits-52-week-high-after-guidance-raise-q2-beat

Axon, Trade Desk rise; Alcon, Rackspace fall

Stocks that traded heavily or had substantial price changes Wednesday: Axon, Trade Desk rise; Alcon, Rackspace fall

NEW YORK — Stocks that traded heavily or had substantial price changes Wednesday:

Alcon Inc., down $3.53 to $71.94.

The eye care company trimmed its profit and revenue forecasts for the year.

Trade Desk Inc., up $19.74 to $74.24.

The digital-advertising platform operator gave investors an encouraging revenue forecast.

Akamai Technologies Inc., up 91 cents to $95.99.

The cloud services provider beat Wall Street’s second-quarter financial forecasts.

Rackspace Technology Inc., down $1.08 to $5.80.

The cloud technology company cut its earnings and revenue forecasts for the current quarter.

CyberArk Software Ltd., up $11.29 to $149.74.

The information security company beat analysts’ second-quarter earnings and revenue forecasts.

Axon Enterprise Inc., up $14.45 to $126.07.

The maker of stun guns and body cameras raised its revenue forecast for the year.

OptimizeRx Corp., down $6.68 to $15.57.

The digital health company reported weak second-quarter earnings and gave investors a discouraging revenue forecast.

Repay Holdings Corp., down $2.70 to $10.25.

The payment technology and processing company reported disappointing second-quarter earnings and revenue.

Source: https://abcnews.go.com/Business/wireStory/axon-trade-desk-rise-alcon-rackspace-fall-88210984

Why Are Honest Company Shares Trading Lower Today

Shivani Kumaresan , Benzinga Staff Writer

March 25, 2022 6:33am 186 Comments

Why Are Honest Company Shares Trading Lower Today

  • Honest Company Inc (NASDAQ: HNST) reported fourth-quarter FY21 sales growth of 3% year-on-year, to $80.38 million, missing the consensus of $84.59 million.
  • The revenue increase was driven by strong volume growth in Skin and Personal Care and Diapers and Wipes product categories.
  • Diapers and Wipes revenue rose 16% Y/Y, Skin and Personal care grew 26%, and Household & Wellness declined 68%.
  • Revenue through digital channel increased 17%, representing 51% to total revenue, whereas Retail fell 8% and constituted 49% of revenue.
  • The gross margin contracted by 360 basis points Y/Y to 30%.
  • The operating loss for the quarter narrowed to $(8.6) million.
  • EPS loss of $(0.10) missed the analyst consensus of $(0.06).
  • The company held $93.2 million in cash and equivalents as of December 31, 2021.
  • The company expects inflation and supply chain headwinds to continue to challenge the industry.
  • Outlook: Honest sees FY22 revenue to be flat Y/Y.
  • The company expects FY22 adjusted EBITDA loss of $(10) million – $(5) million.
  • The company expects Q1 revenue to decline by approximately 15% Y/Y, with subsequent three quarters to see mid-single-digit growth., with
  • Price Action: HNST shares are trading lower by 19.2% at $4.88 in premarket on the last check Friday.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Source: https://www.benzinga.com/news/earnings/22/03/26292410/why-are-honest-company-shares-trading-lower-today

Hot Stocks: AMZN, PINS, BILL soar on earnings news; F, APD drop (NASDAQ:AMZN)

Big-name earnings announcements provided the main drivers in Friday’s pre-market action. Amazon (NASDAQ:AMZN) and Pinterest (NYSE:PINS) both attracted significant buying interest after beating expectations with their quarterly reports.

Earnings news also gave a lift to Bill.com (NYSE:BILL), which expanded its value by almost a quarter during pre-market trading.

Some high-profile stocks moved in the opposite direction following the release of their financial figures. Ford (NYSE:F) and Air Products and Chemicals (NYSE:APD) both fell in the wake of their respective quarterly updates.

Gainers

Amazon (AMZN) soared nearly 12% after beating expectations with its Q4 results. The online retailer also announced that it was raising the price for its popular Prime membership to $139 a year.

In terms of Q4 results, AMZN posted net income of $14.3B, including an $11.8B boost from its investment in Rivian (NASDAQ:RIVN), which came public in November. The company’s revenue rose 9% to more than $137B.

Pinterest (PINS) also saw a double-digit percentage gain following the release of the quarterly results. The stock jumped 11% in pre-market action, reversing a 10% slide it posted on Thursday, when PINS was weighed down by a devastating earnings report from Meta Platforms (NASDAQ:FB).

PINS surpassed projections with its Q4 profit, with revenue that jumped 20% to $847B. Adjusted EBITDA reached $351M. These stronger-than-expected results came despite a dip in monthly active users, which fell to 431M.

The release of quarterly results also provided a major boost to Bill.com (BILL). Shares skyrocketed 24% in pre-market trading, thanks to better-than-expected quarterly earnings and increased guidance.

Decliners

Ford (F) suffered an earnings-inspired setback before the opening bell. Shares of the automaker tumbled 6% after issuing a disappointing quarterly report.

F reported Q4 earnings that failed to meet analysts’ expectations. The firm’s forecast likewise disappointing market analysts. The company blamed higher labor and supply costs for the shortfall.

Air Products and Chemicals (APD) also slipped in pre-market action on earnings news. The company beat expectations with its quarterly results but offered a disappointing forecast for the current quarter.

To keep up with Wall Street’s biggest movers throughout the session, turn to SA’s On The Move section.

Gainers

Source: https://seekingalpha.com/news/3796032-hot-stocks-amzn-pins-bill-soar-on-earnings-news-f-apd-drop

PayPal Stock Plunges As E-Commerce Firm Shifts Away From Customer Growth

PayPal Holdings (PYPL) shocked Wall Street with guidance that badly missed views and new strategic objectives when it reported fourth-quarter earnings. PayPal stock plunged Wednesday.

X

San Jose, Calif.-based PayPal reported December-quarter earnings late Tuesday. Earnings and total payment volume came in below analyst estimates.

PayPal 2022 profit guidance and its outlook for customer growth missed as well. In addition, PayPal abandoned five-year financial targets.

PYPL stock plunged 24.6% to close at 132.57 on the stock market today.

PayPal expects to add 15 million to 20 million net new active monthly users in 2022, missing street estimates of 53 million.

In 2021, PayPal added 45.7 million active users organically. It ended the year with 426 million active users, up 13% from a year earlier.

Meanwhile, PayPal management surprised the Wall Street analysts with a new focus on the earnings call, said Lisa Ellis, analyst at MoffettNathanson in a report.

PYPL Stock: Competition Heats Up

“The shocker: management abruptly shifted its focus from driving user growth to driving ARPU (average revenue per user) growth, abandoned its 2025 goal of 750 million users, and will focus instead on increasing engagement among the on-third of PayPal users that drive the vast majority of the company’s revenues,” Ellis said.

PayPal has evolved from online checkout to mobile shopping and person-to-person payments. Competition has heated up with Block (SQ), formerly called Square, and others.

At Susquehanna, analyst James Friedman said: “PayPal is pivoting its strategy to focus more on engagement, but less on net new actives. The new approach sounds sensible to us as many of the new accounts proved less productive.”

PayPal has aimed to develop a financial “super-App” for consumers. The digital wallet features buy now pay later, cryptocurrency trading, bill pay, shopping/rewards tools and savings accounts.

Barclays analyst Ramsey El-Assal said PayPal is pulling back on incentive-driven customer acquisition. Instead, it’s focusing on gaining and cultivating higher-quality users. “The key discussion points over the coming weeks will likely be the achievability of medium-term guidance amid the strategy change, whether the strategy change was a response to competitive dynamics, and what the normalized growth profile of the company looks like,” he added in a report.

PayPal earnings for the quarter ended Dec. 31 were $1.11 per share, up 4% from a year earlier. The e-commerce company said revenue rose 13% to $6.90 billion, including acquisitions.

PayPal Stock: 2022 Profit Guidance Misses

Analysts expected PayPal earnings of $1.12 a share on revenue of $6.90 billion. A year earlier, PayPal earned $1.08 a share on sales of $6.12 billion.

Total payment volume processed from merchant customers climbed 23% to $339.5 billion. Analysts had projected total payment volume of $345.40 billion.

For 2022, PayPal forecast earnings per share in a range of $4.60 to $4.75 per share, roughly 10% below Wall Street estimates. Analysts had predicted full-year earnings of $5.22 a share.

In addition, PayPal lowered its 2022 net revenue growth outlook to 16% at the midpoint of guidance vs. its 18% or better outlook issued in November, Jefferies analyst Trevor Williams said in a report to clients.

PayPal stock had retreated some 24% since its third-quarter earnings report. Former parent eBay (EBAY), which spun off PayPal in 2015, is almost done shifting its payment processing from PayPal to Netherlands-based Adyen.

PYPL stock has pulled back from an all-time high of 310.16 on July 26. PayPal stock holds a Relative Strength Rating of only 19 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists

How To Use The 10-Week Moving Average For Buying And Selling

PYPL stock plunged 24.6% to close at 132.57 on the stock market today.

Source: https://www.investors.com/news/technology/paypal-stock-plunges-as-2022-profit-outlook-misses-estimates/

Mid-Afternoon Market Update: Dow Dips 500 Points; NeuroMetrix Shares Spike Higher

Toward the end of trading Tuesday, the Dow traded down 1.4% to 35,410 while the NASDAQ fell 2.12% to 14,577.79. The S&P also fell, dropping, 1.60% to 4,588.10.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 67,631,190 cases with around 874,320 deaths. India confirmed a total of at least 37,618,270 cases and 486,780 deaths, while Brazil reported over 23,083,290 COVID-19 cases with 621,260 deaths. In total, there were at least 331,801,530 cases of COVID-19 worldwide with more than 5,565,720 deaths.

Leading and Lagging Sectors

Energy shares fell by just 0.5% on Tuesday. Meanwhile, top gainers in the sector included Battalion Oil Corporation (NYSE:BATL), up 8% and Forum Energy Technologies, Inc. (NYSE:FET) up 5%.

In trading on Tuesday, financials shares fell by 2.5%.

Top Headline

The Goldman Sachs Group, Inc. (NYSE:GS) reported weaker-than-expected earnings for its fourth quarter.

Goldman Sachs posted quarterly earnings of $10.81 per share, beating analysts’ estimates of $11.73 per share. The company’s quarterly revenue came in at $12.64 billion, versus expectations of $12.01 billion. Goldman Sachs said fourth-quarter investment banking revenue totaled $3.8 billion, representing an increase of 45% year-over-year.

Equities Trading UP

NeuroMetrix, Inc. (NASDAQ:NURO) shares shot up 33% to $6.53. The FDA has granted Breakthrough Designation to NeuroMetrix’s Quell technology for reducing moderate to severe symptoms of chemotherapy-induced peripheral neuropathy (CIPN) that have persisted for at least 6-months following the end of chemotherapy.

Shares of Activision Blizzard, Inc. (NASDAQ:ATVI) got a boost, shooting 25% to $81.81. Microsoft on Tuesday announced that it plans to acquire game developer and interactive entertainment content publisher Activision Blizzard for $95 per share in an all-cash transaction valued at $68.7 billion.

Mainz Biomed B.V. (NASDAQ:MYNZ) shares were also up, gaining 36% to $28.42 after jumping 27% on Friday.

Check out these big movers of the day

Equities Trading DOWN

Dyne Therapeutics, Inc. (NYSE:DYN) shares tumbled 12% to $8.16. The FDA placed a clinical hold on Dyne Therapeutics investigational New Drug (IND) application to initiate a clinical trial of DYNE-251 in patients with Duchenne muscular dystrophy (DMD) amenable to skipping exon 51.

Shares of China SXT Pharmaceuticals, Inc. (NASDAQ:SXTC) were down 60% to $0.2169 after the company priced a $3.5 million underwritten public offering of ordinary shares.

Silvergate Capital Corporation (NYSE:SI) was down, falling 22% to $108.37 after the company reported worse-than-expected Q4 EPS results.

Commodities

In commodity news, oil traded up 1.3% to $84.90, while gold traded down 0.1% to $1,814.80.

Silver traded up 2.6% Tuesday to $23.51 while copper fell 0.6% to $4.3925.

Euro zone

European shares closed lower today. The eurozone’s STOXX 600 dropped 0.97%, London’s FTSE 100 fell 0.63%, while Spain’s IBEX 35 Index fell 0.65%. The German DAX dropped 1.01%, French CAC 40 fell 0.94% and Italy’s FTSE MIB Index fell 0.74%.

The ZEW Indicator of Economic Sentiment for the Eurozone increased by 22.6 points to a reading of 49.4 in January, while German ZEW Indicator of Economic Sentiment climbed 22.6 points to 51.7 in January. Italy’s trade surplus shrank to EUR 4.163 billion in November from EUR 6.864 billion in the year-ago month.

The UK unemployment rate dropped to 4.1% in the three months to November, recording the lowest level since the three months to June 2020, while number of employed people rose by 60,000 on quarter to 32.475 million during the three months to November.

Economics

The New York Empire State Manufacturing Index declined to -0.7 in January from 31.9 in the previous month.

The NAHB housing market index declined by 1 point to a reading of 83 in January from a ten-month high level of 84 in December.

Check out the full economic calendar here

FET

Source: https://markets.businessinsider.com/news/stocks/mid-afternoon-market-update-dow-dips-500-points-neurometrix-shares-spike-higher-1031110227?op=1

Novavax Stock: Buy, Sell, or Hold in 2022?

Revenue is right around the corner. Key Points

  • About 30 countries have authorized Novavax’s vaccine.
  • The company plans on applying for U.S. authorization in about one month.
  • Vaccine rollout may be a determining factor for share price performance this year.

Novavax (NASDAQ:NVAX) has taken investors on quite an exciting ride since it entered the coronavirus vaccine race. The biotech leaped into the spotlight in the early days of the pandemic when it won $1.6 billion in support from the U.S. government. And the company finished 2020 with a gain of more than 2,700%.

But the Novavax story became more complicated last year. Investors expected Novavax to apply for U.S. regulatory authorization in the first half. Instead, troubles with a manufacturing ramp up got in the way. The stock has dropped nearly 60% from highs reached in February of last year. Novavax has since resolved its production issues and today is on track to apply for U.S. authorization in about a month. Now the question is whether we should hang on to hopes and buy or hold the shares — or whether we should sell. Let’s take a closer look.

A masked healthcare worker holding up a syringe.

Image source: Getty Images.

Billions of dollars in revenue

First of all, it’s important to note that over 30 countries have already authorized the Novavax vaccine. That means revenue is just ahead. This is particularly significant because until this point, Novavax didn’t have any product revenue. It’s too early to say exactly how much revenue we should expect. But in an earnings report last year, Novavax mentioned generating billions of dollars in the four to six quarters following regulatory authorization.

The company said it will put the focus on providing doses to countries most in need first. These are the countries that pay less for doses — so revenue may start slowly. But Novavax could eventually become an important player in high-income countries too. Last year, the company signed a deal with the European Union to deliver as many as 200 million doses through 2023. And the U.S. investment in Novavax included an order for as many 100 million doses.

You may wonder what role Novavax could play, though, in countries where vaccination rates are high. For instance, 62% of the U.S. population and 70% of the European Union population are fully vaccinated. It’s true that first-to-market players like Pfizer and Moderna are likely to keep their positions.

But Novavax could carve out a decent share of these markets for two reasons. First, Novavax presents an alternative to the leaders’ mRNA vaccines. There isn’t anything wrong with mRNA vaccines. But some people may not be able to take them for a specific reason. And others may be more comfortable with a more traditional vaccine technology. Novavax is a protein subunit vaccine, like the currently commercialized hepatitis B vaccine. Subunit vaccines contain parts of a pathogen (instead of the whole pathogen) to spur an immune response. The Novavax candidate contains genetically engineered spike protein in nanoparticle form along with an adjuvant.

“Mixing and matching” vaccines

Second, Novavax may benefit from the idea of “mixing and matching” vaccines. The U.S. Food and Drug Administration gave this practice the nod a few months ago. The idea is if you’ve received a primary series of, say, the Moderna vaccine, you can opt for another brand as a booster. As the omicron variant gains ground worldwide, many countries are encouraging residents to go for boosters. So, Novavax clearly could benefit here.

Further down the road, Novavax has a couple of more important catalysts. The company’s flu vaccine candidate — NanoFlu — met all primary endpoints in a pivotal trial. The next step is a regulatory submission. This could be another important product for Novavax in the near future. And NanoFlu may be a component of a blockbuster a few years from now. Novavax has completed enrollment in a phase 1/2 trial of its combined flu/coronavirus vaccine candidate. Rival Moderna is also working on such a candidate — but Novavax is further ahead.

Cheap right now

Considering this, Novavax stock is incredibly cheap right now. It’s trading at a bit more than five times forward earnings estimates.

All of this sounds very positive, right? So, should we all go out and buy Novavax shares? It depends on your investment style. Novavax still faces two big risks. I’m thinking back to the manufacturing struggles last year. If these issues arise again and slow down vaccine rollout, I would expect the shares to suffer. And the shares also may drop if there are any more delays in Novavax’s quest for authorization in the U.S. So, if you’re uncomfortable with volatility, this probably isn’t the best time to pick up Novavax shares.

But if you’re an aggressive long-term investor, I favor buying or holding shares of this company for all of the elements I mentioned above. This could be a big year for Novavax.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool recommends Moderna Inc. The Motley Fool has a disclosure policy.

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But the Novavax story became more complicated last year. Investors expected Novavax to apply for U.S. regulatory authorization in the first half. Instead, troubles with a manufacturing ramp up got in the way. The stock has dropped nearly 60% from highs reached in February of last year. Novavax has since resolved its production issues and today is on track to apply for U.S. authorization in about a month. Now the question is whether we should hang on to hopes and buy or hold the shares — or whether we should sell. Let’s take a closer look.

Source: https://www.fool.com/investing/2022/01/13/novavax-stock-buy-sell-or-hold-in-2022/