Stock Market Nerd – Earnings Round-Up – Hims, Workday, Okta & Axon – March 02, 2024
Hims (HIMS)
Results:
- Beat revenue estimate by 0.3% & beat guide by 0.4%.
- Beat EBITDA estimate by 33% & beat same guide by 33%.
- Beat 82.0% GAAP GPM estimate by 70 bps.
- Other income was the source of the positive GAAP EPS.
Source: Brad Freeman – SEC Filings, Company Presentations, and Company Press Releases
Annual Guidance & Valuation:
- Revenue guide beat estimates by 8%.
- EBITDA guide beat estimates by 47%.
Hims trades for 35x 2024 EPS and 100x 2024 GAAP EBIT. EPS will rise by 62.4% Y/Y and GAAP EBIT will inflect positively.
Balance Sheet:
- $225M in $ & equivalents.
- No debt
- Basic shares +2.7% Y/Y; diluted shares +7.6% Y/Y.
Workday (WDAY)
Results:
- Met revenue estimate and beat revenue guide by 0.6%.
- Met subscription revenue guide.
- Beat EBIT estimate by 2.0% & beat guide by 2.5%.
- Beat $1.47 EPS estimate by $0.10.
Annual Guidance & Valuation:
- Reiterated annual subscription revenue guidance & reiterated 2024 EBIT margin leverage guidance.
WDAY trades for 43x fiscal 2025 EPS and 40x fiscal 2025 FCF. EPS is expected to grow by 14% Y/Y. FCF is expected to be roughly flat Y/Y.
Balance Sheet:
- $7.8B in cash & equivalents; $3B in debt.
- Basic shares +2.3% Y/Y; diluted shares +4.5% Y/Y.
Okta (OKTA)
Results:
- Beat revenue estimate by 3.0% & beat revenue guide by 3.2%.
- Beat EBIT estimate by 25.1% & beat EBIT guide by 25.1%.
- Beat $0.51 EPS estimate by $0.12; Beat FCF estimate by 63%.
cRPO = current remaining performance obligations
Annual Guidance & Valuation:
- Revenue beat by 1.2%.
- EBIT beat by 8.3%.
- $2.26 EPS guide beat by $0.29.
Okta trades for 48x 2024 EPS. EPS is expected to grow by 41.3% Y/Y.
Balance Sheet:
- $2.2 billion in cash & equivalents.
- $1.2 billion in senior notes.
Axon (AXON)
Results:
- Beat revenue estimate by 2.6% & beat revenue guide by 3.2%.
- Beat EBITDA estimate by 7.3%% & beat EBITDA guide by 8.7%.
- Beat GAAP EBIT estimate by 2.5%.
- Beat $0.85 EPS estimate by $.27.
- Beat $0.49 GAAP EPS estimate by $0.26.
ARR = Annual Recurring Revneue
Annual Guidance & Valuation:
Annual revenue guidance was 1.6% ahead of expectations while annual EBITDA guidance was 1.7% ahead of expectations.
Axon trades for 52x 2024 EBITDA and 72x 2024 EPS. EBITDA is expected to grow by 31% Y/Y with EPS expected to grow by 29.7% Y/Y.
Balance Sheet:
- $1.3B in cash & equivalents.
- $677 million in convertible senior notes
- Diluted shares rose 4.4% Y/Y.
- Basic share rose by 0.3% Y/Y.
