Earnings season was in high gear this week, with a number of notable businesses reporting earnings, including tech giant Apple (NASDAQ: AAPL). Apple’s latest results are certainly worth a look. But so are the latest earnings releases from two smaller tech companies: GoDaddy (NYSE: GDDY) and Zendesk (NYSE: ZEN).
Here’s what you should know about these three companies’ most recent quarterly updates.
Apple marketing chief Phil Schiller reveals the iPhone XR
Image source: Apple.
Apple importantly returned to top-line growth during its fiscal third quarter, the company revealed on Tuesday. Contributing the most to the company’s 1% year-over-year growth was a 13% increase and services revenue and a 48% jump in wearables, home, and accessories revenue.
Apple’s wearables, home, and accessories segment notably benefited from an acceleration in revenue growth from wearables, or Apple Watch, AirPods, and Beats-branded products. It was a “blowout quarter for wearables,” Cook said in the company’s fiscal second-quarter earnings call. Revenue from wearables products increased “well over 50%” year over year, the CEO added.
Zendesk
Cloud-based customer service platform Zendesk grew nicely in its second-quarter. Revenue increased 37% year-over-year $194.6 million. Further, the company’s non-GAAP (adjusted) earnings per share rose from $0.01 in the year-ago quarter to $0.05. Growth was “driven by the growing appeal of our software that serves companies ranging from high-growth start-ups and small businesses to midsize and large enterprises,” said management in the company’s second-quarter shareholder letter.
Management pointed out its strong progress in moving upmarket with enterprise customers. “During the quarter, the percentage of our annual recurring revenue from customers with 100 or more Zendesk Support agents advanced to 42% versus 38% a year ago,” the company said.
Importantly, Zendesk’s dollar-based net expansion rate, which measures the company’s annual expansion within existing customers, was at 117% — within management’s target range between 110% to 120%.
GoDaddy
GoDaddy, a domain name registrar and provider of online tools, saw its revenue increase 13% year over year to $737.2 million. This was at the high end of management’s guidance range for revenue during the period to be between $730 million and $740 million. This growth was supported by a broad base of catalysts, including a 9.7% increase in domain revenue, a 14.4% rise in hosting and presence revenue, and a 20.4% jump in business applications revenue. Average revenue per user rose 7.8% as total customers increased 5.5% to 19 million.
Notably, GoDaddy’s cash from operations jumped 25.1% year over year to $161.3 million.
The news in GoDaddy’s update that stole the show, however, was the CEO’s decision to step down for health reasons. Filling his place is Aman Bhutani, who previously served as Brand Expedia Group president at Expedia.
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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple and Zendesk. The Motley Fool has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, and long January 2020 $150 calls on Apple. The Motley Fool recommends GoDaddy. The Motley Fool has a disclosure policy.
This article was originally published on Fool.com