TMTB: META ROKU MSFT ETSY CVNA EBAY DASH First takes
META -3%: Looks ok with Revs slightly below bogeys but above street and Q4 guide inline with bogeys/street at $46.5B
OPMs much better at 43% vs street at 39.6% and EPS 6.03 vs street at 5.05. The endless year of efficiency continues..
Top end of exp guide lowered by $1B. Lower end of capex guide increased by $1B for 2024 to $38-$40B
No 2025 capex guide yet…
META RESULTS: Q3
- Revenue $40.59B, +19% y/y, EST $40.25B
- Advertising rev. $39.89B, +19% y/y, EST $39.71B
- Family of Apps revenue $40.32B, +19% y/y, EST $39.92B
- Reality Labs revenue $270M, +29% y/y, EST $312.8M
- Other revenue $434M, +48% y/y, EST $395.5M
- Operating income $17.35B, +26% y/y, EST $16.24B
- Family of Apps operating income $21.78B, +25% y/y, EST $20.47B
- Reality Labs operating loss $4.43B, +18% y/y, EST loss $4.66B
- Operating margin 43% vs. 40% y/y, EST 39.6%
- EPS $6.03 vs. $4.39 y/y, EST $5.25
- Ad impressions +7% vs. +31% y/y, EST +10.8%
- Average price per ad +11% vs. -6% y/y, EST +6.76%
- Average Family service users per day 3.29B, +4.8% y/y, EST 3.25B
- COMMENTARY AND CONTEXT
- "We expect fourth quarter 2024 total revenue to be in the range of $45-48B."
ROKU -7%: Revs beat and Q4 Revs above but Q4 EBITDA guide misses at 30M vs 36.2M
Q4 revs guided to 1.14B vs street at 1.11b with 14% platform growth.
This had become a little more crowded in recent weeks and investors were expecting a better ramp up in EBITDA margins going forward and they are calling more seasonal S&M spend for lower EBITDA guide. Investors more focused on 2025 opex so will be key what they say on the call about that (not much in the shareholder letter on that front)
“We expect these initiatives, including the early positive impacts from our deeper integration with The Trade Desk, along with tailwinds from Political ad spend to continue in Q4. We estimate Q4 Total net revenue of $1.140 billion growing 16% YoY, with Platform revenue growing 14% YoY and Devices revenue growing 25% YoY. We estimate Q4 Total gross profit of $465 million and Adjusted EBITDA of $30 million. We expect Sales and Marketing to be more seasonal this year than in the prior year. As a result, we expect OpEx to be up 9% YoY in Q4. However, Sales and Marketing and total OpEx will be slightly down for the full year 2024, reflecting our ongoing operational discipline. Our expectations for both Q4 and 2024 OpEx YoY growth rates exclude one-time restructuring charges from 2023. We remain confident in our ability to grow Platform revenue in 2025 and beyond as we grow ad demand, lean into our Home Screen as the lead-in for TV, and grow Roku-billed subscriptions.”
ROKU RESULTS: Q3
- Net revenue $1.06B, +16% y/y, EST $1.02B
- Player revenue $154.0M, +23% y/y, EST $154.6M
- Platform revenue $908M, +15% y/y, EST $859.9M
- Streaming hours 32.0B, +20% y/y, EST 31.91B
- R&D expenses $178.8M, -37% y/y, EST $183.4M
- Streaming households 85.5M, +13% y/y, EST 85.29M
MSFT +1%%: Looks solid so far with nice rev and eps beat. Azure +34% hits bogey.
Azure guide comes on the call with bogeys at 32-33%. OPM margins better as OI beats $30.5B vs street at $29.2B
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