Tech Stocks This Week: Earnings From Apple, Shopify, and Teladoc

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).

  1. Apple’s revenue, EPS, and guidance all crushed analyst estimates.
  2. Shopify’s torrid growth continued, albeit at a decelerated rate.
  3. Teladoc’s growth benefited from a major acquisition.
An excited customer holds an Apple Watch 3 Series in a box at an Apple Store

Image source: Apple.

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.

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.

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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.”

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.


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