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!

Error: Please check your email address.
Show Comments

Blog Posts

The competitive advantage Australian retailers have over Amazon

With all of the hype around Amazon, many online retailers have been trying to understand how they can compete with the American retail giant.

Joel Milligan

Performance manager, Columbus Agency

How to become the customer experience custodian

The number one objective enterprises give for embarking on a digital transformation is to improve customer experiences with new engagement models, according to IDC’s 2017 global study.

Fear not: It's only a robot

Every time I pass through the automated border controls at the Sydney airport I walk away with a feeling of exasperation on the one hand and relief on the other. Exasperation, because the face recognition technology inevitably always fails to recognise me. Relief, because we seem to be safely years away from the Orwellian reality of states controlling every aspect of our lives; something the media is keenly warning us against each day.

Dan Kalinski

CEO, iProspect Australia and New Zealand

And to add after looking at event pictures plus, observing all AU's visible Blonde Bimbos (think Julie Bishop to this Georgie Gardnerare)...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

CMO 50 2017 announcement mentioning "innovation". I checked date and its November not April so its wasn't an April Fools' Joke. Australia...

absolutelyconcerned

In pictures: CMO 50 2017: The who's who of Australian marketing leadership

Read more

I worked at Momentum when the transformation started way back in 2013 (not 2015 as stated in the article). It was a painfully slow and co...

Jay

How Momentum Energy has transformed its entire business to be customer-led

Read more

Another buzzword thoughtlessly latched onto, without any thought for the implications on the organisations that have to lumber through th...

Tired

Rolling out agile marketing at Deakin

Read more

Useful., also don’t miss out on these 5 features of Adobe Experience Cloud - Visit here > http://www.softcrylic.com/b...

Sunil Joseph

Adobe debuts Advertising Cloud, Experience Cloud

Read more

Latest Podcast

More podcasts

Sign in