Latest news with #Internet-Software
Yahoo
12 hours ago
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BB's Q1 Earnings Beat, Revenues Down Y/Y, Stock Up on Improved Outlook
BlackBerry Limited BB reported first-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 2 cents. The figure beat the company's estimate of a loss of 1 cent to breakeven. In the year-ago quarter, it reported a non-GAAP loss of 2 cents. The Zacks Consensus Estimate was pegged at total revenues of $121.7 million exceeded its guidance ($107-$115 million) but fell 1.4% year over year, mainly due to soft sales in Secure Communications and Licensing units amid continued strength in the QNX continues to operate in a challenging macro environment, with some customers delaying guidance amid ongoing uncertainty. While automotive tariffs have not had a direct impact, they have contributed to delays in customer purchasing decisions. Potential supply chain disruptions for OEMs may also affect production volumes and, in turn, royalty revenues. These factors are reflected in its guidance, which will be continuously reviewed throughout fiscal 2026. Despite market fluctuations, BB has maintained its full-year revenue guidance of $250–$270 million and adjusted EBITDA of $55–$60 million for the QNX exceeded fiscal first-quarter Secure Comms expectations by closing major Secusmart deals earlier than planned. With a strong pipeline ahead, it has raised full-year revenue guidance by $4 million to $234–$244 million and adjusted EBITDA to $37–$47 million (16–19%). It continues to project Licensing & Other revenues to be around $24 million. Non-GAAP loss per share is expected to be between 8 cents and 10 cents, the same as the prior view. BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote With a stronger outlook for Secure Communications revenues and EBITDA, the company has also raised its fiscal 2026 revenue guidance. It now projects total revenues of $508–$538 million and adjusted EBITDA of $72–$87 million. Previously, it estimated revenues to be between $504 million and $534 million and adjusted EBITDA of $69–$84 better-than-anticipated performance and bolstered view, BB's shares gained 10% in the pre-market trading on June 25, 2025. The stock has gained 95.9% in the past year compared with the Zacks Internet-Software industry's growth of 37.6%. Image Source: Zacks Investment Research Revenues from the QNX business totaled $57.5 million, surpassing the high end of guidance ($51-$55 million). This reflects 8% year-over-year growth, despite ongoing uncertainty in the auto market and recent tariff announcements. The growth was mainly driven by a 9% increase in royalties and a 23% rise in development seat license revenues. During the quarter, the company continued its design win momentum in the core digital cockpit and ADAS. GEM now makes up 43% of the total SDP 8.0 pipeline, which grew 55% in the Communication revenues declined 7.3% year over year to $59.5 million. It, however, beat the top limit of guidance ($50-$54 million) driven by steady traction in its Secusmart product. It was a strong quarter for German government sales, with some large deals closing early. The global pipeline is growing, especially in defense, as governments seek more secure tools. Despite long government sales cycles, BB anticipates more Secusmart deals this year. Increasing design wins for AtHoc and UEM are another revenues reached $4.7 million compared with $6 million in the previous-year quarter, due to lower revenues from existing licensing deals. Malikie, which bought BB's noncore patents, is exploring new licensing opportunities. While no extra revenues are expected this year, management expects healthy performance in fiscal 2027 and fiscal 2028. Adjusted gross margin was 74.6%, up from 73.5% in the year-ago period. QNX's gross margin fell 1% year over year to 81% due to adverse forex impacts. Secure Comms' gross margin was 70%, up both sequentially and year over year, driven by a higher share of Secusmart software EBITDA was $16.4 million, up from $10.5 million in the year-ago quarter, owing to effective cost management. The company expected adjusted EBITDA to be breakeven to $7 million. QNX's adjusted EBITDA for the quarter came in above the high end of guidance ($2-$6 million) at $12.7 million. Strong leverage in the Secure Communications model helped the division beat expectations ($3-$6 million) with adjusted EBITDA of $9.6 million. Licensing adjusted EBITDA lagged projection (around $5 million) at $3.8 operating expenses were $78.4 million, down 7.5%. For the quarter that ended on May 31, 2025, BlackBerry used $18 million of net cash in operating activities compared with $15 million in the prior-year quarter. Management had guided the usage of $20-$30 of May 31, BlackBerry had $381.9 million in cash, cash equivalents, short-term and long-term investments, down from $410 million as of Feb. 28, 2025. The company returned $10 million to shareholders during the quarter via a buyback of 2.57 million common shares. The company expects fiscal second-quarter 2026 revenues to be in the $115-$125 million range. Non-GAAP EPS is expected to range between breakeven and 1 cent. It forecasts an operating cash usage of $5-$15 million band and adjusted EBITDA to be between $8 million and $14 is taking a cautious stance on QNX due to possible impacts from tariffs and slower buying decisions, mostly for fresh products like QNX Cabin. It expects revenues of $55–$60 million and adjusted EBITDA of $10–$13 by a strong Secure Communications' pipeline, it expects revenues of $54–$59 million and adjusted EBITDA of $3–$6 million. BB continues to expect licensing revenues of about $6 million and adjusted EBITDA of about $5 million per quarter. At present, BlackBerry carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. CoreWeave CRWV reported first-quarter 2025 loss per share of $1.49, which was much wider than a loss of 62 cents in the year-ago quarter. Adjusted net loss for the quarter was $149.6 million compared with a loss of $23.6 million a year ago. Shares of CoreWeave have surged 68% in the past month. Atlassian Corporation TEAM reported third-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Its non-GAAP earnings per share of 97 cents beat the Zacks Consensus Estimate by 7.8%. The figure jumped 9% from the year-ago quarter's non-GAAP earnings of 89 cents per share. Shares of TEAM have fallen 3% in the past Software, Inc GWRE reported non-GAAP earnings per share of 88 cents in third-quarter fiscal 2025 (ended April 30, 2025), up 238.5% year over year and beat the Zacks Consensus Estimate by 91.3%. In the past month, shares of GWRE have gained 13.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
30-05-2025
- Business
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StoneCo vs. Block: Which Fintech Stock is a Smarter Buy for 2025?
Brazil-based StoneCo STNE and U.S.-headquartered Block XYZ are two standout fintech players in 2025. Both companies operate integrated payment and financial service platforms tailored for small- and medium-sized merchants. StoneCo is off to a strong start this year with first-quarter adjusted earnings beating the Zacks Consensus Estimate by 6.3% and improving 17.2% year over year. Effective repricing execution and lower average funding spreads fueled a 19% increase in gross profit, reinforcing the company's disciplined approach to profitability. Block, on the other hand, posted a 28% increase in adjusted operating income and a 15% rise in adjusted EBITDA in the first quarter of 2025. Its Square segment delivered a 9% jump in gross profit, supported by GPV growth and broader banking product adoption. Strategic investments in AI, upmarket seller acquisition and field sales highlight the company's focus on innovation and scale. So, which fintech stock is better positioned to deliver an upside in 2025, StoneCo with its strong regional execution, or Block with its global innovation strategy? Let's take a closer look. Year to date, StoneCo shares have surged 67.3%, significantly outpacing the Internet-Software industry's 14.7% gain and the S&P 500's 0.8% rise. In contrast, Block shares have declined 27.3% during this period, mainly weighed down by weaker-than-expected Cash App performance. Image Source: Zacks Investment Research StoneCo Displays Strong Growth Momentum, Outpaces 2025 Guidance in Q1: StoneCo reported 19% year-over-year revenue growth in the first quarter of 2025, driven by strong performance across its payments, financial services, and software segments. Repricing initiatives and resilient client demand lifted Financial Services revenues by 20%, while Software revenue rose 11% on the back of a growing client base and larger average ticket sizes. Earnings also reflected solid operational execution, with adjusted EPS up 17.2% and adjusted basic EPS surging 36% year over year. Gross profit climbed 19%, supported by repricing, lower funding spreads, and disciplined cost control, enabling margin expansion despite macroeconomic headwinds. The company has already exceeded key 2025 targets, with first-quarter gross profit and basic EPS growth outpacing full-year guidance, underscoring strong momentum and the effectiveness of its cash sweep funding strategy. Image Source: Zacks Investment Research Disciplined Capital Deployment and Robust Shareholder Returns: Having identified R$3 billion in excess capital at the close of 2024, StoneCo has already returned approximately R$1 billion year to date through aggressive share repurchases. In first-quarter 2025 alone, StoneCo repurchased R$843 million worth of shares, contributing to a total of R$2.4 billion in buybacks over the past 12 months, driving a 12% distribution yield. The company also launched a new R$2 billion share repurchase program. Strong Momentum Across Square and Cash App Ecosystems: Square is regaining market share, with gross profit up 9% year over year and gross payment volume growing 8.2% on a constant currency basis. This reflects Block's effective product development and go-to-market strategies, including field sales, upmarket seller acquisitions and strategic partnerships. Cash App is set for network expansion, despite a soft quarter due to temporary tax refunds and spending shifts. Block is focusing on user growth among teens and families, while scaling Cash App Borrow after receiving FDIC approval for nationwide lending — a move expected to drive broader eligibility and better unit economics starting in the third quarter of 2025. Block is also unlocking new revenue streams. 'Cash App Afterpay,' a retroactive BNPL feature launched in February, is gaining early traction. Meanwhile, its Proto division plans to launch Bitcoin mining chips and systems in the second half of 2025, marking a bold step into digital asset infrastructure. Image Source: Zacks Investment Research Disciplined Financial Management and Shareholder Return: XYZ continues to demonstrate strong financial execution and discipline, with adjusted EBITDA rising 15% and adjusted operating income increasing 28% year over year. The company generated $1.53 billion in adjusted free cash flow over the trailing 12 months, up from $1.07 billion a year ago. In addition, Block is returning capital to shareholders, having repurchased $600 million in stock through April 2025. Management signaled intentions to continue buybacks. StoneCo is trading at a forward 12-month price-to-earnings (P/E) ratio of 8.75, above its one-year median of 8.20. Block's forward earnings multiple sits at 19.79, below its one-year median of 31.86. Meanwhile, both companies appear undervalued when compared with the industry's forward 12-month P/E of 37.59X. At present, STNE stays discounted compared to both XYZ and the industry. Image Source: Zacks Investment Research Given its robust financial momentum, disciplined cost management, and superior earnings execution, StoneCo, a Zacks Rank #1 (Strong Buy), presents a more compelling investment opportunity compared to Block, which carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. StoneCo has consistently outperformed its own guidance, with first-quarter gross profit rising 19% year over year, exceeding the company's 14% target. On the other hand, while Block has shown positive signs of product innovation and is regaining momentum in Square, investor sentiment remains mixed due to Cash App's near-term softness and premium valuation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report StoneCo Ltd. (STNE) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
13-05-2025
- Business
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Phunware (PHUN) Reports Q1 Loss, Tops Revenue Estimates
Phunware (PHUN) came out with a quarterly loss of $0.12 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.41 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this company would post a loss of $0.18 per share when it actually produced a loss of $0.06, delivering a surprise of 66.67%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Phunware , which belongs to the Zacks Internet - Software industry, posted revenues of $0.69 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 14.67%. This compares to year-ago revenues of $0.92 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Phunware shares have lost about 41.7% since the beginning of the year versus the S&P 500's decline of -3.8%. While Phunware has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Phunware: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.12 on $0.7 million in revenues for the coming quarter and -$0.48 on $3.21 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Braze, Inc. (BRZE), has yet to report results for the quarter ended April 2025. This company is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +200%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Braze, Inc.'s revenues are expected to be $158.7 million, up 17.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Phunware (PHUN) : Free Stock Analysis Report Braze, Inc. (BRZE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-01-2025
- Business
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Meta Vs Microsoft: Which Stock is More Attractive Ahead of Earnings?
Tech giants Meta Platforms META and Microsoft MSFT will highlight this week's earnings lineup which also includes results from EV leader Tesla TSLA. Scheduled to release their quarterly results on Wednesday, January 29, here's a look at which software giant may be the better investment as earnings approach. Considered an internet software company due to its involvement in creating and managing internet-based platforms and services, Meta's Q4 sales are expected to be up 17% to $46.97 billion. On the bottom line, Q4 EPS is thought to have spiked 29% to $6.90 versus $5.33 a share in the comparative quarter. Notably, Meta's Zacks Internet-Software Industry is currently in the top 19% out of 250 Zacks industries. It's also noteworthy that Meta has surpassed the Zacks EPS Consensus for eight consecutive quarters with an average earnings surprise of 11.34% in its last four quarterly reports. Image Source: Zacks Investment Research More intriguing, The Zacks ESP (Expected Surprise Prediction) indicates the streak may continue with the Most Accurate Estimate having Q4 EPS pegged at $7.37 and nearly 7% above the Zacks Consensus. Image Source: Zacks Investment Research Pivoting to Microsoft, the leader in PC software will be reporting results for its fiscal second quarter (FY25). Microsoft's Q2 sales are expected to increase 11% to $68.7 billion. Although Q2 EPS is expected to rise 7% to $3.13, the Zacks ESP does indicate Microsoft could miss earnings expectations with the Most Accurate Estimate at $3.05 and 2% below the Zacks Consensus. Image Source: Zacks Investment Research Microsoft has exceeded earnings expectations for nine consecutive quarters with an average EPS surprise of 4.91% over the last four quarters. That said, Microsoft's Zacks Computer-Software Industry is in the bottom 34% of all Zacks industries at the moment. Image Source: Zacks Investment Research Over the last year, Meta's stock has risen +64% to largely outperform Microsoft's +6%, while topping the benchmark S&P 500 and the Nasdaq's gains of +24% respectively. Image Source: Zacks Investment Research At their current levels, Meta trades at 25X forward earnings which is a pleasant discount to Microsoft's 34.4X, and is closer to the benchmark. Meta trades at 10.2X sales and beneath Microsoft's 12.9X, although both are at noticeable premiums to the S&P 500's 5.6X. Image Source: Zacks Investment Research Ahead of their quarterly reports, Meta Platforms stock lands a Zacks Rank #3 (Hold) with Microsoft shares landing a Zacks Rank #4 (Sell). As alluded to in the Zacks ESP, earnings estimate revisions have remained favorable for Meta and suggest investors could still be rewarded. In contrast, earnings estimates have declined for Microsoft which is an indicator of more downside risk ahead. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research Sign in to access your portfolio
