Takeaways from Apple, Facebook and Google's latest earnings

Apple, Facebook and Google each reported earnings this week, and though the results varied, they also reaffirmed the scale and industry-wide impact of these massive tech companies.

Three of the world's largest and most influential technology companies — Apple, Facebook and Google — this week reported their latest earnings results for the quarter ending in June 2016. Facebook closed the week with its stock at an all-time high.

Following impressive growth during the previous quarter, it is now among the five most valuable companies in the world. Apple sits atop that list with a market cap of $567.8 billion, and Google is next, with a cap of $546.7 billion. Facebook is valued at $362.9 billion, placing it fifth on the list behind Microsoft ($444.4 billion) and Amazon ($368.5 billion).

Here's a quick summary of the highs (and lows) of the financials from the three companies:

Apple continues to decline

Apple's 13-year revenue growth streak came to an end earlier this year, and the trend continued in the company's fiscal third quarter of 2016. Many of Apple's key business metrics are in decline, including revenue, which dipped almost 15 percent year over year to $42.4 billion. Sales of Apple's flagship products and geographic growth also shrunk, according to the company's financial results.

Sales of iPads and services (mostly iTunes and App Store) were the only growth areas for Apple. Its services business grew by 19 percent year over year to $5.9 billion, and though iPad shipments were down by 9 percent, related tablets revenue jumped 7 percent to almost $4.9 billion. iPhone sales declined by 15 percent year over year to 40.4 million, and revenue from Apple's smartphone business dropped 23 percent year over year to $24 billion. Apple banked $7.8 billion in net income on $42.4 billion in revenue during the quarter. The company also said it sold its billionth iPhone in July.

Facebook audience growth soars

Facebook saw growth in every important metric during the second quarter of 2016. Its ad revenue jumped 63 percent year over year to $6.24 billion, and the company said 1.71 billion people now use the service at least once a month, a use number that's up 15 percent year over year. Facebook's daily active users rose 17 percent year over year to 1.13 billion, and 1.03 billion of those people use mobile devices to access Facebook every day, according to the company.

During the earnings call, Facebook CEO Mark Zuckerberg reiterated the company's long-term vision for "a world that is video first, with video at the heart of all our apps and services." Zuckerberg said the company doesn't plan to run pre-roll ads before videos and will instead opt to run interstitial ads between video segments. Facebook provided no details or timeline for when ads might make their way to live video. The company banked $2.05 billion in net income on $6.44 billion in revenue during the second quarter of 2016.

Demand for ads, cloud services help Google beat expectations

Google's parent company Alphabet was the last of the three tech giants to report earnings this week, and its results were among the most impressive and unexpected. Strong demand for ads on Google's search engine and other products drove a 21 percent year-over-year increase in revenue. Clicks on Google ads increased 29 percent, and advertisers' cost-per-click dropped 7 percent from the prior year, according to the company.

Google's non-advertising business, which includes enterprise cloud services, the Google Play store and hardware, grew by 33 percent year over year, to $2.17 billion. During the earnings call, Google execs attributed much of that growth to its cloud business. Google's experimental projects, "moonshots" or "other bets," resulted in an $859 million loss on $185 million in revenue. The company banked $4.88 billion in net income on $21.5 billion in revenue during the second quarter of 2016.

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Is your customer experience program suffering bright shiny object syndrome?

You may have heard of ‘bright shiny object syndrome’. The term is used to describe new initiatives undertaken by organisations that either lack a strategic approach, or suffer from a failure to effectively implement.

Leveraging technology to stand out in the sea of sameness

The technology I'm talking about here is data and marketing automation. Current digital marketing methodology, much as it is practiced at Bluewolf, dictates the need for a strategy that does four things: Finds the right audience, uses the right channel, delivers the right content, and does all of that at the right time.

Eric Berridge

CEO and co-founder of Bluewolf, an IBM Company

Lead Management is very important part of the process. For anyone running Facebook Lead Ads I would recommend using this service.Get your...

Dirk Lo

How this fintech startup is improving content marketing and lead generation

Read more

I am agreeing with Mr. Tyron Hayes that a measured test-and-learn approach could be missing opportunities to not only better engage custo...

rush essay reviews

CMO interview: How Curtin University’s marketing chief is using test and learn to cope with complexity

Read more

Excellent!

Dr Sadasivan,US

Shakespeare shows data and creativity aren’t Montagues and Capulets

Read more

Great article! Agreed with all... Matthew Lerner, Deeps De Silva... When a company has a great product that solves customers needs, a gre...

James Tyler

Why marketers are embracing growth hacking techniques

Read more

Very good article, Social media analytics helps in problem identification. They can serve as an early warning system for negative custome...

BizVinu

Four ways to use social media to boost customer loyalty

Read more

Latest Podcast

More podcasts

Sign in