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16% increase in content obligations in the last quarter, 37% year over year. Membership growth may be slowing down, but costs keep piling up.
John Golden:
Hewlett Packard have incurred "restructuring expense" in every single year since 2000. Hard to argue these are non-recurring expenses when they've been present for over a decade. HPQ is far from alone in classifying lots of expenses as "restructuring" in order to boost non-GAAP earnings:
blog.newconstructs.c...' target='_blank'>blog.newconstructs.c...
22% increase in sales and marketing even as revenue declined by almost 40%. blog.newconstructs.c...
When a company makes a big acquisition mid-year, investors need to time-weight the acquisition to reflect the fact that the acquired company's assets are only generating revenue for the parent company for part of the year. blog.newconstructs.c...
Commercial Cloud revenue is roughly doubling each year. Especially impressive since Microsoft's advertising budget fell by 12% in 2014. blog.newconstructs.c...
General and Administrative expense was artificially inflated by a $733 million EU fine in 2013. Don't be fooled by the income statement, Microsoft's margins and profits declined in 2014. blog.newconstructs.c...
Total operating leases are up from $2.5 billion last year. These off-balance sheet items should be treated as debt and included in invested capital. blog.newconstructs.c...
Excluding Digital Insight, revenue growth was just 4% in Financial Services and 2% overall. seekingalpha.com/art...
Library titles contributed the most revenue to the feature film segment, and 2013's The Croods was number 2. Not a good sign when the company's that reliant on past movies.
Scott:
Agree with you on stock compensation, but disagree on discontinued operations. Since these operations will not be part of the company going forward, it doesn't make sense to include them in your valuation of the company. blog.newconstructs.c...' target='_blank'>blog.newconstructs.c... Discontinued operations assets should also be removed from invested capital so that ROIC is not distorted. blog.newconstructs.c...' target='_blank'>blog.newconstructs.c...
Still increasing spending on R&D, up to 21% of revenue. Getting into the mobile market has been tough, but it's good to see that Intel is not backing down here.
$31 million favorable impact of foreign exchange rate changes are non-operating and artificially decrease operating loss.
Content obligations rising faster than revenues on an absolute basis. Up $1.4 billion from a year ago, and $7 billion of those obligations are due in the next three years. blog.newconstructs.c...
Service provider revenue continues to grow faster than membership revenue. Even though ANGI sells itself as "consumer driven", service providers now make up over 77% of revenues. blog.newconstructs.c...
Marketing cost per membership acquisition up 13% from a year ago. Not a good sign that they're having to spend more to keep adding members. blog.newconstructs.c...