As earnings season continued at full speed this week, a range of tech companies reported quarterly results. But three fast-growing tech companies were some of the most interesting to watch: iPhone maker Apple (NASDAQ: AAPL), e-commerce platform Shopify (NYSE: SHOP), and virtual healthcare platform Teladoc (NYSE: TDOC).
- Apple’s revenue, EPS, and guidance all crushed analyst estimates.
- Shopify’s torrid growth continued, albeit at a decelerated rate.
- Teladoc’s growth benefited from a major acquisition.
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Apple earnings
After posting strong fiscal third-quarter results earlier this week, Apple’s stock jumped more than 5% the next trading day and continued to gain steam throughout the week. Shares pushed passed the $1 trillion market capitalization mark and ended the week up nearly 10%.
Apple’s iPhone, services, and other products segments all saw significant revenue growth during the quarter, rising 20%, 31%, and 37% year over year, respectively. In addition, Apple’s aggressive share repurchases recently continued to help drive outsize growth in EPS, pushing the key metric 40% higher year over year.
Overall, Apple’s 17% year-over-year revenue growth and its 40% year-over-year EPS growth easily beat analyst estimates.
Looking ahead, management said it expected fiscal fourth-quarter revenue to be between $60 billion to $62 billion, representing approximately 16% year-over-year revenue growth.
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Shopify earnings
E-commerce platform Shopify reported second-quarter revenue of $245 million, up 62% year over year. The figure importantly came in well above a consensus analyst estimate for revenue of $235 million. Shopify’s adjusted earnings per share for the quarter of $0.02 was also above a consensus analyst estimate for a loss of $0.03.
But Shopify’s guidance for third-quarter revenue between $253 million and $257 million implied a significant deceleration in the company’s revenue growth rate. The midpoint of this guidance range represents 49% year-over-year growth. Shopify’s second-quarter revenue growth of 62% was also notably meaningfully below first-quarter year-over-year revenue growth of 68%.
Despite its decelerating growth, management believes there’s an “expansive opportunity set” ahead of it for continued growth,” said Shopify CFO Amy Shapero in the company’s second-quarter earnings release.
Teladoc earnings
Growth stole the spotlight in Teladoc’s second-quarter update.
Teladoc’s revenue surged 112% higher in Q2 to $94.6 million. But $26.7 million of this revenue came from Teladoc’s acquisition of Best Doctors, and $6.2 million came from its purchase of Advance Medical. Excluding acquisitions, organic revenue increased 39% year over year — still an impressive pace.
Growth was helped by a 74% year-over-year increase in subscription access fees to $65.1 million. Organically, subscription access fees revenue was up 35% year over year. Revenue from visits increased 107% year over year to $14.8 million as total visits climbed 72% year over year to 533,000.
Importantly, Teladoc’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was positive for the first time, rising from negative-$5.1 million in the year-ago quarter to positive-$2.7 million in the second-quarter of 2018.
Teladoc CEO Jason Gorevic said period represented “another strong quarter financially and operationally as we met or exceeded our expectations across the board.”
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Daniel Sparks owns shares of Apple. The Motley Fool owns shares of and recommends Apple and Shopify. The Motley Fool has the following options: long January 2020 $150 calls on Apple and short January 2020 $155 calls on Apple. The Motley Fool recommends Teladoc. The Motley Fool has a disclosure policy.
