Another week is upon us, which means more earnings to cover! Looking at the current schedule, next week is likely to be the final ‘busy’ week. I’ll likely switch back to including any earnings within the Sunday Market Update posts.
A quieter week this week, meaning I’ll only be posting today and tomorrow; no post on Thursday like with previous weeks.
Today, I’ll be covering Palantir Technologies, The Coca-Cola Company and Airbnb.
Palantir Technologies (PLTR) – Q4 Earnings
Yesterday, Palantir reported Q4 earnings which beat expectations on both revenue and net income, with a very positive report and a strong balance sheet. In fact, this is the first quarter Palantir have reported a positive GAAP net income.
While the company did report lower-than-expected guidance for 2023, investors seemed fairly happy with the performance so far with the stock up around ~15% in after-hours trading.
Key Points:
- Revenue of $509m, up from $433m (+17.5%) a year ago
- Commercial revenue grew 11% year-over-year
- Government revenue grew 23% year-over-year
- Gross profit of $404m, up from $345m (+17.1%) a year ago
- Operating loss of ($18m), better than the loss of ($59m) a year ago
- Profit before tax of $38m, compared to a loss of ($123m) a year ago
- Profit after tax of $31m, compared to a loss of ($156m) a year ago
- Basic earnings per share of $0.01
- Revenue guidance for Q1 2023 of between $503m and $507m, slightly lower than this quarter. Revenue guidance for 2023 as a whole of between $2,180m and $2,230m
- Customer count grew 55% year-over-year and 9% quarter-over-quarter
- The company has cash and cash equivalents of $2,599m, with total liabilities (both current and non-current) of just $819m, putting the company in a great position to continue investing in the company while also weathering any macroeconomic headwinds
The Coca-Cola Company (KO) – Q4 Earnings
A mixed report from Coca-Cola this quarter (and this year, really). The report beat analyst expectations in terms of revenue, while earnings were in-line with expectations. The revenue beat is largely due to huge price hikes across their portfolio of products throughout 2022. However, these increases are beginning to impact demand for the products; consumers are becoming less willing to buy, suggesting the company’s pricing power may have reached its peak.
Growth is expected to remain low in 2023 when taking inflation into account, but that doesn’t seem to have stopped the board from approving a 4.5% dividend increase for the year.
Key Points:
- Revenue of $10,125m, up from $9,464m (+7.0%) a year ago
- A negative currency impact of ~8% significantly impacted revenues
- Removing the currency impact, as well as any price increases, the company reported a 1% decline in in “unit case volume”. Essentially, while prices were raised, the overall quantity of product fell
- Gross profit of $5,612m, up from $5,376m (+4.4%) a year ago
- Operating profit of $2,075m, up from $1,672m (+24.1%) a year ago
- Profit before tax of $2,500m, compared to $2,960m a year ago
- Profit after tax of $2,031m, compared to $2,414m a year ago
- Basic earnings per share of $0.47
- Dividend of $0.46 per share announced, to be paid on 3rd April 2023, a 4.5% dividend increase compared to Q1 2022
- For 2023, the company expects to see organic revenues increase by between 7% and 8%. Currency headwinds are expected to still cause challenges, with at least a 2% to 3% negative impact
Airbnb (ABNB) – Q4 Earnings
Airbnb’s results came as a big surprise to many, beating on revenue and profit for the quarter while also providing better-than-expected guidance moving into 2023. Despite high inflation and a squeezed consumer, bookings remained incredibly high.
Key Points:
- Revenue of $1,902, up from $1,532m (+24.2%) a year ago
- On a constant-currency basis, revenue would have grown 31% year-over-year
- Gross profit of $1,557m, up from $1,237m (+25.9%) a year ago
- Operating profit of $235m, up from $76m (+209%) a year ago
- Profit before tax of $344m, compared to $73m a year ago
- Profit after tax of $319m, compared to $55m a year ago
- Basic earnings per share of $0.50
- Revenue guidance for Q1 2023 is between $1,750m and $1,820m. On a year-over-year basis, this would be up between 16% and 21%. Note that Q1 2022 saw travel restrictions in many countries due to the Omicron Covid-19 variant, making the year-over-year comparison somewhat easier. This is slightly offset by the war in Ukraine happening towards the end of February 2022
- Bookings (i.e., number of nights and experiences) for the quarter totalled 88.2m, a 20% increase year-over-year but slightly below analyst expectations
- In terms of gross booking value, the company saw bookings of $13,500m for the quarter
Do you invest in any of these companies? Have these earnings changed your view about the company’s prospects in any way? Let me know in the comments!
