Over the next several weeks, subscribers will get 40+ earnings reviews, ongoing fundamental news coverage and real-time updates of my own portfolio/performance.
Other reviews sent so far include Mercado Libre, Axon, Uber, SoFi, Reddit, Amazon, Lemonade, Meta, Alphabet, ServiceNow, Taiwan Semi, Netflix and more!
Table of Contents
a. Demand
- Beat revenue estimate by 3.9% & beat guidance by 4.1%.
- Beat billings estimate by 6.8%.
- Missed remaining performance obligations (RPO) estimate by 2.8%.
b. Profits & Margins
- Missed 80.5% GPM estimate by 80 basis points (bps; 1 basis point = 0.01%).
- Gross margin was hit a bit by investment timing. No changes to their structural 80%+ GPM target.
- Beat EBIT estimate by 10.3% & beat guidance by 11.7%.
- OpEx rose by 26% Y/Y compared to 36% Y/Y OpEx growth during Q2 2025.
- Beat $0.58 EPS estimate by $0.07 & beat guidance by $0.07.
- Beat FCF estimates by 29%.
c. Balance Sheet
- $5B cash & equivalents.
- $1B convertible notes.
- 3.4% Y/Y dilution.