Crazy numbers from tech earning calls
Lies, lies and damn statistics – all the more relevant when you’re a tech company.
Overnight, two of the biggest players in Silicon Valley reported 2Q16 earnings overnight, and the results were fairly mixed. In year-on-year (YoY) terms, both Twitter and Apple
Twitter (NSDQ: TWTR) reporting growing YoY revenue of 20%.
Apple (NSDQ: APPL) reported shrinking YoY revenue of 14.5%
Apple CEO, Tim Cook
At the end of the day, its profit that matter, and in that regard, the numbers tell a very different story. There’s one small difference – Apple’s profits are still ludicrously huge, while Twitter still struggles to convert users to revenue.
You wouldn’t think it possible for a microblogging site with over 250 million active monthly users to go lose a fistful of dollars, but somehow Twitter managed to do it. Losses for the quarter totalled a mind-boggling US$107 million dollars – a feat that would seem almost impossible had they not lost a total of US$2 billion since launching 10 years ago.
Two. Billion. Dollars. How is that even possible?
Twitter CEO, Jack Dorsey
Meanwhile, over at Cupertino, Tim Cook would have slightly relieved to have delivered numbers slightly above forecasts. Although the YoY numbers aren’t great, the tech giant still managed to deliver profit of US$7.8 billion on US$43.2 billion for quarter – a staggering $86 million per day!
That leaves Apple with around $240 billion in the bank to do with what they please. That’s quite a war chest, and one that is rumoured to be used for a rumoured Apple Car…
…but that’s another story.