Dropbox is crashing despite beating Wall Street expectations, announces COO Dennis Woodside is leaving

Dropbox is crashing despite beating Wall Street expectations, announces COO Dennis Woodside is leaving

Back when Dennis Woodside joined Dropbox as its chief operating officer more than four years ago, the company was trying to justify the $10 billion valuation it had hit in its rapid rise as a Web 2.0 darling. Now, Dropbox is a public company with a nearly $14 billion valuation, and it once again showed Wall Street that it’s able to beat expectations with a now more robust enterprise business alongside its consumer roots.

Dropbox’s second quarter results came in ahead of Wall Street’s expectations on both the earnings and revenue front. The company also announced that Dennis Woodside will be leaving the company. Woodside joined at a time when Dropbox was starting to figure out its enterprise business, which it was able to grow and transform into a strong case for Wall Street that it could finally be a successful publicly traded company. The IPO was indeed successful, with the company’s shares soaring more than 40 percent in its debut, so it makes sense that Woodside has essentially accomplished his job by getting it into a business ready for Wall Street.

“I think as a team we accomplished a ton over the last four and a half years,” Woodside said in an interview. “When I joined they were a couple hundred million in revenue and a little under 500 people. [CEO] Drew [Houston] and Arash [Ferdowsi] have built a great business, since then we’ve scaled globally. Close to half our revenue is outside the U.S., we have well over 300,000 teams for our Dropbox business product, which was nascent there. These are accomplishments of the team, and I’m pretty proud.”

The stock initially exploded in extended trading by rising more than 7 percent, though even prior to the market close and the company reporting its earnings, the stock had risen as much as 10 percent. But following that spike, Dropbox shares are now down around 5 percent. Dropbox is one of a number of SaaS companies that have gone public in recent months, including DocuSign, that have seen considerable success. While Dropbox has managed to make its case with a strong enterprise business, the company was born with consumer roots and has tried to carry over that simplicity with the enterprise products it rolls out, like its collaboration tool Dropbox Paper.

Here’s a quick rundown of the numbers:

  • Q2 Revenue: Up 27 percent year-over-year to $339.2 million, compared to estimates of $331 million in revenue.
  • Q2 GAAP Gross Margin: 73.6 percent, as compared to 65.4 percent in the same period last year.
  • Q2 adjusted earnings: 11 cents per share compared, compared to estimates of 7 cents per share.
  • Paid users: 11.9 million paying users, up from 9.9 million in the same quarter last year.
  • ARPU: $116.66, compared to $111.19 same quarter last year.

So, not only is Dropbox able to show that it can continue to grow that revenue, the actual value of its users is also going up. That’s important, because Dropbox has to show that it can continue to acquire higher-value customers — meaning it’s gradually moving up the Fortune 100 chain and getting larger and more established companies on board that can offer it bigger and bigger contracts. It also gives it the room to make larger strategic moves, like migrating onto its own architecture late last year, which, in the long run could turn out to drastically improve the margins on its business.

“We did talk earlier in the quarter about our investment over the last couple years in SMR technology, an innovative storage technology that allows us to optimize cost and performance,” Woodside said. “We continue to innovate ways that allow us to drive better performance, and that drives better economics.”

The company is still looking to make significant moves in the form of new hires, including recently announcing that it has a new VP of product and VP of product marketing, Adam Nash and Naman Khan, respectively. Dropbox’s new team under CEO Drew Houston are tasked with continuing the company’s path to cracking into larger enterprises, which can give it a much more predictable and robust business alongside the average consumers that pay to host their files online and access them from pretty much anywhere.

In addition, there are a couple executive changes as Woodside transitions out. Yamini Rangan, currently VP of Business Strategy & Operations, will become Chief Customer Officer reporting to Houston, and comms VP Lin-Hua Wu will also report to Houston.

Dropbox had its first quarterly earnings check-in and slid past the expectations that Wall Street had, though its GAAP gross margin slipped a little bit and may have offered a slight negative signal for the company. But since then, Dropbox’s stock hasn’t had any major missteps, giving it more credibility on the public markets — and more resources to attract and retain talent with compensation packages linked to that stock.

“Our retention has been quite strong,” Woodside said. “We see strong retention characteristics across the customer set we have, whether it’s large or small. Obviously larger companies have more opportunity to expand over time, so our expansion metrics are quite strong in customers of over several hundred employees. But even among small businesses, Dropbox is the kind of product that has gravity. Once you start using it and start sharing it, it becomes a place where your business is small or large is managing all its content, it tends to be a sticky experience.”

Source: Mobile – Techcruch

The greedy ways Apple got to $1 trillion

The greedy ways Apple got to trillion
For being the richest company ever with $243 billion in cash, Apple sure cuts corners in the stingiest ways. The hardware giant became the first trillion-dollar company week. Yet it’s tough to reconcile Apple earning $11 billion in profit per quarter with it still screwing us over on cords and keyboards. The “it just works” philosophy has slipped through the cracks of the money-printing machine. It’s not that Apple couldn’t afford to fix the problems, it’s just ensnared in hubris such that it doesn’t see them as important.
We still turn to Apple because it makes the best core products. But the edges of the customer experience have frayed like the wires of a Lightning cable. The key to Apple’s fortune is obviously selling high margin iPhones, not these ways it nickels and dimes us. But the company has an opportunity to raise its standards after this milestone, and win back the faith that could push it to a $2 trillion market cap.
1. Frayed Charging Cables
Apple gives you that tingly feeling in the worst way. Can it not build Lightning cables and MacBook chargers a little sturdier? If you avoid losing one long enough to put in some serious use, it inevitably ends up splittling where the cord meets your iPhone or exits the laptop power supply. Whether it’s wrapping them in electrical tape or the spring of a retractable pen, people have come up with all sorts of Macgyver methods to make their Apple chargers last. It got so bad that Apple was sued into offering a MacBook charger replacement program, but that expired years ago. If these are what allow us to play with the fancy devices it invents, shouldn’t they get the same quality of industrial design?
Image via Sophia Cannon
2. Buried iTunes Subscriptions Cancellation
Want to cancel your Apple Music subscription or some other service you got roped into with a free trial? It’s SUPER easy. First, click the totally unlabeled and generic circle with a blotch in it that’s supposed to be a profile picture icon. You should see a “Manage Subscriptions” option…but you don’t. Instead, you’ll have to know to tap “View Apple ID”. Once you auth in with the same face or thumbprint that opened your phone in the first place you’ll find the option to cut them off. And as thank you for this convenience, you’ll get to pay 30 percent extra on some subscriptions if you pay through Apple. It’s clearly exploitative dark pattern design.

3. Keyboard Claptrap
The MacBook keyboard is the on-ramp to the information superhighway, yet a single grain of sand can cause a pile up. Renowned Apple pundit John Gruber called it “one of the biggest design screwups in Apple history”. The new butterfly key design Apple rolled out in 2016 can get jammed by dust, requiring a lengthy disassembly process often requiring a professional to fix. Suddenly your work grinds to a halt. Apple wouldn’t always cover this repair, even under warranty. It took a lawsuit and tons of public backlash for Apple to offer free fixes, and that still typically leaves you without a laptop for a few days. I’m typing this article on a cracked-screen 2013 MacBook Pro because I refuse to upgrade until they make the keyboard design more resilient.

4. Killing Affiliate Fees Blogs Rely On
Apple benefits from a legion of blogs obsessing over its hardware and software, hyping up everything it sells. Just this week it returned that favor by announcing it will cut off one of their core sources of revenue. Websites would previously earn a 7 percent commission from Apple in exchange for affiliate link clicks leading to purchases on the App Store. But over the past few years, Apple has begun to sell ads inside the App Store too, competing for advertisers with those external blogs. It’s also built up its own editorial team that curates what’s featured, and apparently doesn’t want competition in being a king-maker. So in October Apple is shutting down the affiliate program that app review sites like TouchArcade and AppShopper depend on, potentially spelling their doom.

5. Dongle Hell
What’s the opposite of “it just works”? Paying extra to lug around a slew of gangly cord connectors you need just to plug things into your laptop or phone. Dongles are the emblem of Apple’s abandonment of the user experience. A Thunderbolt 2 to Thunderbolt 3 dongle runs $50 while it will cost you $9 to plug in any pair of headphones from the past half-century once you’ve inevitably lost the Lightning dongle you’re allocated. Apple loves pushing us towards its vision of tomorrow, like Bluetooth headphones (that it sells) and USB-C fast-chargers (that it sells). But ditching headphone jacks and old school USB ports makes Apple’s latest devices incompatible with sanity. Even its own commercial shows musician Grimes struggling with her dongles. Sorry you can’t pass me the aux cord. I’m from the future.
Image via Notebookcheck
[Featured Image via Instructibles]

Source: Gadgets – techcrunch

Apple nears a $1 trillion market cap as it clears another quarter ahead of expectations

Apple nears a trillion market cap as it clears another quarter ahead of expectations

Apple is inching closer and closer to becoming a $1 trillion company today after posting third-quarter results that beat what analysts were expecting and bumping the stock another few percentage points — which, by Apple standards, is tens of billions of dollars.

The company’s stock is up around 2.5 percent this afternoon after the report, which at a prior market close with a market cap of around $935 billion, is adding nearly another $20-plus billion to its market cap. A few quarters ago we were talking about how Apple was in shooting distance of that $1 trillion mark, but now it seems more and more like Apple will actually hit it. Apple is headed into its most important few quarters as we hit the back half of the year, with its usual new lineup of iPhones and other products and its accompanying critical holiday quarter.

Here’s a quick breakdown of the numbers:

  • Revenue: $53.3 billion, up 17 percent year-over-year compared to analyst expectations of $52.34 billion.
  • Earnings: $2.34 per share compared to analyst estimates of $2.18 per share.
  • iPhones: 41.3 million, up 1 percent year-over-year though revenue on the iPhone line was up 20 percent year-over-year. Analysts expected 41.79 million iPhones sold.
  • iPhone average selling price: $724
  • iPads: 11.55 million, up 1 percent year-over-year but ahead of analyst expectations of 10.3 million.
  • Macs: 3.7 million, down 13 percent year-over-year and behind analyst expectations.
  • Services: $9.6 billion, up 31 percent year-over-year.
  • Other products: $3.7 billion, up 37 percent year-over-year.

So in all, the shipment numbers were hit or miss at a granular level, but at the same time the iPhone is generating a lot more revenue than it did last year — implying that there might be a shifting mix toward more expensive iPhones. Apple’s strategy to figure out if it could unlock a more premium tier in consumer demand, then, may be panning out and helping once again drive the company’s growth. It’s then padding out the rest of that with growth in services and other products like it has in the past few quarters as Apple heads into the end of the year.

In the past year or so, Apple’s stock has continued to rise even though there may have been some dampened expectations for its latest super-premium iPhone, the iPhone X. Its shares are up more than 20 percent in the past year, and in the second quarter the company announced that it would return an additional $100 billion to investors in a new capital return program, which at the time also sparked a considerable jump in its stock. Apple hasn’t delivered a product that has entirely changed the market calculus like it did when it first started rolling out larger iPhones, but its strategy of incremental improvements and maneuvering in Wall Street continues to provide it some momentum as it heads toward $1 trillion.

Source: Mobile – Techcruch

Meet the speakers at The Europas, and get your ticket free (July 3, London)

Meet the speakers at The Europas, and get your ticket free (July 3, London)
Excited to announce that this year’s The Europas Unconference & Awards is shaping up! Our half day Unconference kicks off on 3 July, 2018 at The Brewery in the heart of London’s “Tech City” area, followed by our startup awards dinner and fantastic party and celebration of European startups!
The event is run in partnership with TechCrunch, the official media partner. Attendees, nominees and winners will get deep discounts to TechCrunch Disrupt in Berlin, later this year.
The Europas Awards are based on voting by expert judges and the industry itself. But key to the daytime is all the speakers and invited guests. There’s no “off-limits speaker room” at The Europas, so attendees can mingle easily with VIPs and speakers.
What exactly is an Unconference? We’re dispensing with the lectures and going straight to the deep-dives, where you’ll get a front row seat with Europe’s leading investors, founders and thought leaders to discuss and debate the most urgent issues, challenges and opportunities. Up close and personal! And, crucially, a few feet away from handing over a business card. The Unconference is focused into zones including AI, Fintech, Mobility, Startups, Society, and Enterprise and Crypto / Blockchain.
We’ve confirmed 10 new speakers including:

Eileen Burbidge, Passion Capital

Carlos Eduardo Espinal, Seedcamp

Richard Muirhead, Fabric Ventures

Sitar Teli, Connect Ventures

Nancy Fechnay, Blockchain Technologist + Angel

George McDonaugh, KR1

Candice Lo, Blossom Capital

Scott Sage, Crane Venture Partners

Andrei Brasoveanu, Accel

Tina Baker, Jag Shaw Baker
How To Get Your Ticket For FREE
We’d love for you to ask your friends to join us at The Europas – and we’ve got a special way to thank you for sharing.
Your friend will enjoy a 15% discount off the price of their ticket with your code, and you’ll get 15% off the price of YOUR ticket.
That’s right, we will refund you 15% off the cost of your ticket automatically when your friend purchases a Europas ticket.
So you can grab tickets here.
Vote for your Favourite Startups
Public Voting is still humming along. Please remember to vote for your favourite startups!
Awards by category:
Hottest Media/Entertainment Startup
Hottest E-commerce/Retail Startup
Hottest Education Startup
Hottest Startup Accelerator
Hottest Marketing/AdTech Startup
Hottest Games Startup
Hottest Mobile Startup
Hottest FinTech Startup
Hottest Enterprise, SaaS or B2B Startup
Hottest Hardware Startup
Hottest Platform Economy / Marketplace
Hottest Health Startup
Hottest Cyber Security Startup
Hottest Travel Startup
Hottest Internet of Things Startup
Hottest Technology Innovation
Hottest FashionTech Startup
Hottest Tech For Good
Hottest A.I. Startup
Fastest Rising Startup Of The Year
Hottest GreenTech Startup of The Year
Hottest Startup Founders
Hottest CEO of the Year
Best Angel/Seed Investor of the Year
Hottest VC Investor of the Year
Hottest Blockchain/Crypto Startup Founder(s)
Hottest Blockchain Protocol Project
Hottest Blockchain DApp
Hottest Corporate Blockchain Project
Hottest Blockchain Investor
Hottest Blockchain ICO (Europe)
Hottest Financial Crypto Project
Hottest Blockchain for Good Project
Hottest Blockchain Identity Project
Hall Of Fame Award – Awarded to a long-term player in Europe
The Europas Grand Prix Award (to be decided from winners)
The Awards celebrates the most forward thinking and innovative tech & blockchain startups across over some 30+ categories.
Startups can apply for an award or be nominated by anyone, including our judges. It is free to enter or be nominated.
What is The Europas?
Instead of thousands and thousands of people, think of a great summer event with 1,000 of the most interesting and useful people in the industry, including key investors and leading entrepreneurs.

• No secret VIP rooms, which means you get to interact with the Speakers
• Key Founders and investors speaking; featured attendees invited to just network
• Expert speeches, discussions, and Q&A directly from the main stage
• Intimate “breakout” sessions with key players on vertical topics
• The opportunity to meet almost everyone in those small groups, super-charging your networking
• Journalists from major tech titles, newspapers and business broadcasters
• A parallel Founders-only track geared towards fund-raising and hyper-networking

• A stunning awards dinner and party which honors both the hottest startups and the leading lights in the European startup scene
• All on one day to maximise your time in London. And it’s PROBABLY sunny!

That’s just the beginning. There’s more to come…

Interested in sponsoring the Europas or hosting a table at the awards? Or purchasing a table for 10 or 12 guest or a half table for 5 guests? Get in touch with:
Petra Johansson
[email protected]
Phone: +44 (0) 20 3239 9325

Source: Gadgets – techcrunch

Spotify misses on revenue in first earnings report with 170M users

Spotify misses on revenue in first earnings report with 170M users

In Spotify’s first ever earnings report, the streaming music came up a little short, pulling in $1.36 billion revenue in Q1 2018. That’s compared to Wall Street’s estimates of $1.4 billion in revenue and an adjusted EPS loss of $0.34. Spotify hit 170 million monthly active users, up 6.9 percent from 159 million in Q4 2017 and 99 million ad-supported users. It also hit 75 million Premium Subscribers, up 30 percent year-over-year, and 75 million paid subscribers, up 5.6 percent from 71 million in Q4 and up 45 percent YoY.

Interestingly, the MAU count indicates that 4 million of Spotify’s 75 million subscribers pay but don’t listen. Spotify confirmed as much. For reference, Apple Music has roughly 40 million subscribers.

 

Spotify’s results were in line with the guidance it gave yet Wall Street was still disappointed. Spotify shares promptly fell over 8 percent in after-hours trading to around $156, beneath its IPO pop a month ago but still above its $149 day one closing price and $132 IPO pricing.

Spotify’s Gross Margin was 24.9 percent in Q1, over the top of its guidance range of 23-24 percent. Its operating loss was $48.9 million, which improved significantly, and come in under the $59 million to $95 million operating loss Spotify warned of. The music company now has $1.91 billion in cash and cash equivalents at the end of Q1.

As for Q2 guidance, Spotify expects 175 to 180 million MAU, 79 to 83 million paid subscribers, and $1.3 to $1.55 billion in revenue, excluding the impoact of foreign exchange rates. It’s planning an operating loss of $71 million to $167 million, in part due to a $35 million to $42 million expense related to its direct listing debut on the public markets.

During the earnings call, CEO Daniel Ek said he hasn’t seen any significant impact from increased promotion by its competitor Apple Music. In fact, churn hit an all-time low of 4.7 percent, and lifetime value to customer acquisition cost ratio is holding firm at 2.7:1. But overall, “We don’t see this as a winner takes all market” Ek says.

As for voice-activated smart speakers, Ek said “We view it longterm as an opportunity not a threat” since Spotify is available on Google Home and Amazon Alexa devices.

Spotify is hoping to boost paid subscriber numbers by first luring more users to its free ad-supported service. Last month it unveiled a revamped free tier that lets users listen to songs on-demand on particular Spotify-controlled playlists instead of only being able to play in shuffle mode. The idea is that once users get a taste of on-demand listening, they’ll pay to upgrade so they can listen to whatever they want across the whole catalog.

That strategy could not only boost subscriber numbers, but also give Spotify more leverage over the record labels. More than 30 percent of all Spotify listening now happens on its owned playlists. That gives it the power to choose what will become a hit, and in turn means record labels need to play nice. This could help Spotify secure more exclusive content and a better bargaining position in royalty negotiations.

Source: Mobile – Techcruch

Samsung tempers record earnings with pessimistic smartphone outlook

Samsung tempers record earnings with pessimistic smartphone outlook

Samsung’s latest earnings report is a succinct lesson in hoping for the best and preparing for the worst. The actual news here is pretty positive, as the company reports a record operating profit, courtesy of high demand for its components and flagship handsets.

But a statement tied to the news mentions “slow demand” no fewer than seven times, as the company looks to temper investor expectations, Those warnings largely revolve around the company’s display panel offerings and a perceived stagnations in the mobile sector in general.

“For the second quarter,” the company writes in a statement, “Samsung expects the Memory Business to maintain its strong performance, but generating overall earnings growth across the company will be a challenge due to weakness in the Display Panel segment and a decline in profitability in the Mobile Business amid rising competition in the high-end segment.”

The slow down, it seems, has already had an impact on the display side, though Samsung’s weathered much worse than this already. Keep in mind how the whole Note 7 debacle didn’t make a dent in the company’s profitability. Samsung is the consumer electronics poster child from the importance of product diversity.

There’s some Apple shade implied here as well. After all, Samsung provides the OLED panel for its chief competitor’s ultra premium handset, leaving Wall Street to infer that less than stellar iPhone X sales was a contributor here. Samsung’s forecast also includes warnings around slowed demand for its own handsets in the next quarter.

“In the Mobile Business,” Samsung writes, “profitability is expected to decline QoQ due to stagnant sales of flagship models amid weak demand and an increase in marketing expenses.” That’s due, at least in part, to a natural cycle as the initial hype dies down — though there also appears to be a larger global smartphone slow down at play here as well. But the company says it believes that will be buoyed in part by increased summer demand for TVs and air conditioners. People might not be buying as many new smartphones in the future, but hey, climate change will make sure we always need ACs. 

Source: Mobile – Techcruch

Facebook beats in Q1 and boosts daily user growth to 1.45B amidst backlash

Facebook beats in Q1 and boosts daily user growth to 1.45B amidst backlash

Amongst massive criticism over data privacy, Facebook showed the resiliency of its advertising machine by beating Wall Street’s $11.41 billion revenue estimate in its Q1 2018 earnings report by raking in $11.97 billion in revenue with $1.69 EPS compared to the $1.35 estimate.

Facebook added 48 million daily active users to hit 1.449 billion, up 3.42 percent to revive Facebook’s growth after slower 2.18 percent growth last quarter. But Facebook only added 70 million monthly active users to reach 2.196 billion, a 3.14 percent growth rate that was a little slower than last quarter’s 3.39 percent growth. Both daily and monthly users are up 13 percent year-over-year, showing Facebook’s troubles haven’t paralyzed its growth.

This was perhaps the most tumultuous quarter since Facebook went public. Facebook faced intense criticism regarding the Cambridge Analytica scandal and its data privacy practices, leading a massive pull-back of developer capabilities as Zuckerberg headed to testify before Congress. Last quarter saw Facebook’s first-ever decline in users in a market, with a 700,000 user drop in the U.S. & Canada market following changes to promote well-being that reduced the prevalence of viral videos.

Facebook was able to revive its U.S. & Canada user growth this quarter, perking back up to 185 million, from 184 million last quarter — though that’s just a return to where it was in Q3 2017. Monthly active user count in the market went from 239 to 241 million. That shows that while people might disagree with Facebook’s approach to privacy, they aren’t about to give up their News Feeds.

Demonstrating Facebook’s declining web presence, mobile made up $10.7 billion, or 91 percent of all ad revenue, up from 89 percent last quarter. Facebook reached $4.98 billion in profit, up from a weak $4.26 billion last quarter. Average Revenue Per User reached $5.53, up 30 percent year-over-year thanks to strong gains this quarter in Europe and Asia-Pacific. Facebook’s headcount has swelled 48 percent year-over-year as it’s now half-way to its promise of doubling its security and content moderation staff from 10,000 to 20,000 in 2018.

The recent scandals have put a lot of downward pressure on its share price, but apparently the company thinks it’s a good buy. It’s increased the amount authorized under a share repurchase program by an additional $9 billion, on top of an original $6 billion plan, of which it’s spent $4 billion. It’s partly to offset big stock distributions for employees, but CFO David Wehner also said it was “opportunistic,” aka related to Facebook perceiving its price as too low. Wall Street apparently liked the earnings report as shares are up over 4.38 percent to $166.68 in after-hours trading.

The question is whether the new ads transparency requirements, developer platform crackdown and Facebook’s quest to make using it healthier will show up in next quarter’s earnings. These changes could deter advertisers, give users less functionality to play with and remove low-quality viral content that might make users feel bad but keeps them scrolling.

CEO Mark Zuckerberg wrote that, “Despite facing important challenges, our community and business are off to a strong start in 2018. We are taking a broader view of our responsibility and investing to make sure our services are used for good. But we also need to keep building new tools to help people connect, strengthen our communities, and bring the world closer together.” We’ll get to hear more from him at 2pm Pacific during the earnings call, so stay tuned here.

Updates from the earnings call:

  • Zuckerberg said that Internet.org has now helped almost 100 million people connect to the internet, up from 40 million in November 2016.
  • Zuckerberg said 200 million people are now in “meaningful Groups,” up from 100 million last year, though Facebook has a long way to its 1 billion goal.
  • WhatsApp Status has pulled away as the most popular of Facebook’s Snapchat Stories clones. It was at 300 million daily users, equal to Instagram Stories, last time Facebook provided a stat.
  • Since users are moving from feed reading to Stories watching, Facebook says it needs to make Stories ads as good as feed ads to protect its core revenue stream.
  • Facebook CFO David Wehner warned that GDPR may cause Facebook’s European user count to be flat or shrink in Q2, and that it may have a minor impact on ad revenue.
  • Zuckerberg says one of his biggest regrets is that Facebook didn’t get to shape the mobile ecosystem because the company was still small when iOS and Android launched. That’s why Zuckerberg is adamant about Facebook having a major role in the future of virtual reality and augmented reality, which he sees as computing platforms of the future.

Source: Mobile – Techcruch

Netflix nears a $150B market cap as its subscribers continue to balloon

Netflix nears a 0B market cap as its subscribers continue to balloon

Just last quarter Netflix passed a $100 billion market cap — and we might already be talking about it as a $150 billion company before too long with yet another big financial quarter that sent its stock soaring.

Netflix, again, beat out some expectations Wall Street held for the first quarter and provided a pretty good outlook for the next quarter as well, where it said it expected to add around 6.2 million new subscribers. In the first quarter, Netflix added 7.41 million new subscribers — around 2 million of them domestic and the rest internationally. The company continued to see some pretty strong streaming revenue growth, which was up around 43% year-over-year in the first quarter this year, to around $3.6 billion.

With all this, Netflix now has nearly 119 million paid streaming memberships — and it wasn’t all that long when Netflix finally said just over two years ago that it would begin opening up in hundreds of new countries internationally. The company’s shares are up around 6% in extended trading, sending its market cap up north of $140 billion. And all this subscriber growth, too, comes before we’re seeing a new tie-up with Comcast’s cable subscriptions that may end up driving that even more. As usual, Netflix expects to lose a ton of money and says it expects between -$3 billion to -$4 billion in free cash flow, but that’s usually not what investors are looking for.

One of the big questions Netflix still has right now is what kind of price tag it will carry as a tack-on to a Comcast subscription. Earlier this week, the companies announced that Comcast would bundle Netflix in to its cable subscriptions, offering yet another entry point for Netflix to ferret up potential consumers that haven’t quite cut the cord yet but still might be interested in Netflix’s content. Netflix normally carries a price tag of around $13.99, but the companies have not said what its price will be as part of a cable bundle yet.

Following Netflix’s last earnings report — which it, as you might expect, included some blowout subscriber numbers — the company rocketed past a market cap of $100 billion. Since then it’s only been an upward trend for Netflix, which prior to its first-quarter report was worth more than $130 billion. Despite increasing spend on original content, that subscriber number is still mostly where it gets its market value because it’s a forward predictor of its revenue.

Netflix late last year said it expected to spend between $7 billion and $8 billion on original content this year, a number that seems to periodically get an upward revision and is still a dramatic step up from 2017. The company in its report today said it expected to spend between $7.5 billion and $8 billion on original content, and expects that marketing and content spend to weight toward the second half of 2018.

But it has to continue to invest in original content because it is a way to attract new subscribers, and also because it’s content that it can more easily distribute across different geographies and itself has control of the rights and what happens to it. It relies on shows like Stranger Things or Altered Carbon to bring in new users, which then hopefully stick around and eventually help recoup the cost of those shows — and then the cycle starts anew.

Source: Mobile – Techcruch

Square’s bets beyond a register brought in $253M last year as it posts a largely positive fourth quarter

Square’s bets beyond a register brought in 3M last year as it posts a largely positive fourth quarter
 Square posted a largely successful fourth quarter that showed continuing growth with its Cash App — with users spending around $90 million on its Cash card in December, putting it on a potentially $1 billion run rate. That would offer another significant avenue for Square to snap up additional customers as it looks to chip away at the alternatives available for directly sending cash… Read More

Source: Mobile – Techcruch

Fitbit posted a weaker-than-expected quarter and its shares are crashing

Fitbit posted a weaker-than-expected quarter and its shares are crashing
 Fitbit, which has increasingly had to fend off competition from devices like the Apple Watch and is increasingly making moves in the healthcare space, still hasn’t seemed to nail things down quite yet as it posted weaker-than-expected financial results for its fourth quarter. Read More

Source: Mobile – Techcruch