Stock Market Nerd – Earnings Round-Up – March 16, 2024
Adobe (ADBE)
Results:
- GAAP margins & cash flow margins hit by $1B in M&A-related charges.
RPO = Remaining Performance Obligations
OCF = Operating Cash Flow
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Guide & Valuation:
- No full year guidance offered in the presser this quarter.Q2 revenue guide missed estimates by 0.6%.Q2 GAAP & non-GAAP EPS guides roughly met estimates.
Balance Sheet:
- $6.9B in cash & equivalents.
- $3.6B in debt.
- Share count fell slightly Y/Y.
Adobe trades for 25x this year’s EBIT. EBIT is expected to grow by 11% Y/Y.
UiPath (PATH)
Results:
- Beat revenue estimate by 5.6% & beat guide by 5.7%.
- Beat EBIT estimate by 42% & beat same guide by 42%.
- Beat $0.16 EPS estimate by $0.06.
- $309M in annual FCF vs. $0 Y/Y.
- 1st Q of + GAAP EBIT.
ARR = Annual Recurring Revenue; DBNRR = Dollar Based Net Revenue Retention
GPM = Gross Profit Margin
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Annual Guide & Valuation:
- Revenue Beat by 1.8%.
- EBIT Beat by 13.5%.
- Guided to ~18% Y/Y ARR growth.
PATH trades for 37x next year’s EBIT with EBIT set to grow by 24% Y/Y.
Balance Sheet:
- $1.9B in cash & equivalents.
- No debt.
- Basic shares +0.6% Y/Y; diluted shares +3.4% Y/Y.
On Running (ONON)
Results:
- Foreign exchange (FX) heavily impacted demand & margins this quarter. Swiss Franc strength is mightily hurting.
- Missed sales estimate by 1.3%, met sales guide & beat FXN sales guide.
- Missed EBITDA estimate by 9%; sharply missed EPS estimates.
- Exceeded 15% annual EBITDA margin guide by 50 bps.
Annual Guide & Valuation:
- Revenue missed by 3.4%.
- EBITDA sharply missed by 27%.
On trades for 35x this year’s EBIT with EBIT expected to grow by 46% Y/Y.
Balance Sheet:
- CHF (Swiss Francs) 494.6 million cash & equivalents.
- No debt
- Share count rose by 1.1% Y/Y.
