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 newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Why doing your job well is the key to innovation

The words ‘power company’ and ‘innovation’ probably don’t seem like a natural combination. In fact, when I first went for a marketing role with an electricity company, I semi-dreaded the work I thought I’d be doing.

Catherine Anderson

Head of marketing, Powershop Australia

The great unlearning: How brands can assist with the adoption of voice

Mainstream adoption of voice technology will be all about what consumers are learning not to do.

Ash Mustchin

Director, digital and experiences, Principals

Why getting intimate is key to creating a great customer experience

According to CMO’s State of the CMO 2017 research, 83 per cent of CMOs believe customer experience to be central to their role. An interesting stat considering few of us experience great brand experiences.

Pip Stocks

CEO and founder, BrandHook

'to lesson screen time'LOL someone needs a lesson on how to lessen typos.

Andrew Ward

Golden Circles invests in content play to drive brand purpose

Read more

Hey Nadia, interesting read. We have all read about what your chatbots should offer or have but haven't came across with anything about w...

Ashish K Jain

What not to do when building chatbots and voice-based brand interactions

Read more

There are some many other great solutions compared to the ones you listed here. Our clients left some of those and switched to MARA (getM...

Alexandru Rada

CMO's top 10 martech stories for the week - 9 June

Read more

Charming Shane. You know this is a public forum, right ?

Peter Strohkorb

​CMO Interview: Why aligning sales and marketing drives innovation at Konica Minolta

Read more

I agree customer intimacy is a great way of creating better customer experience. Especially in the Insurance and Financial industry. Her...

Jessicalopez1989

Why getting intimate is key to creating a great customer experience and optimising customer value

Read more

Latest Podcast

More podcasts

Sign in