Week in a Nutshell #3

Welcome to the third episode of the 'Week in a Nutshell’ series.

Tech giants like Apple, Google, Facebook and Amazon shared their Q4'2014 earnings last week. Also, there was good news from Turkey.

Let's get to the list:

  1. Q4'2014 Earnings:
  2. Restaurant Discovery App Zomato Acquires Turkey’s Mekanist For Cash

Q4'2014 Earnings:

Apple breaks its sales records with 74.5M iPhones in Q1 2015

Apple had a tremendous, record-breaking quarter. I believe Apple's Q4'2014 performance clears out any doubts about Tim Cook's leadership.

Q4'2014 Revenue: $74.6 billion
Q4'2014 Profit: $18 billion

$18 billion profit in a single quarter is the all time highest profit reported by a company in a single quarter. Here is the list.

Q4'2014 iPhone sales: 74,5 million units (46% growth vs. 51 million units in Q4'2013)
Q4'2014 iPad sales: 21,4 million units (21% decrease vs. 26 million units in Q4'2013)

iPhone sales growth rate is incredibly high thanks to the successful strategic moves in China. Once again, it is clear that iPhone has become the core product for Apple. I believe iPhone will continue to dominate the smartphone market as long as smartphones are still relevant to our world. When they are not, Apple will introduce another product to replace iPhones as their core business. This has happened before and will happen again as iPods replaced Macs and then iPhones replaced iPods and probably one day iXYZ will replace iPhones.

 

Google pulls in $4.76 billion in net income in the last quarter of 2014

Google also announced a good Q4'2014 performance.

Q4'2014 Revenue: $18.1 billion (7% growth vs. $16.86 billion in Q4'2013)
Q4'2014 Profit: $4.76 billion (40% growth vs. $3.38 billion in Q4'2013)

I think 40% growth rate in profit is a significant achievement. It is actually a very challenging target for a company at the scale of Google and I believe this what makes Google special. 

Advertising business contributed to 89% of the total revenue in Q4'2014. Also, Google Play Store performance was very promising. It generated $2 billion revenue in Q4'2014 whereas, iTunes revenue was $2.6 billion for the same period.

 

Facebook Beats Estimates In Q4 With $3.85B Revenue

Facebook had a fantastic performance especially in mobile in Q4'2014. Mobile advertising attributed up to 69% of total advertising revenue. Mobile is driving Facebook forward.

Q4'2014 Revenue: $3.85 billion
Q4'2014 Profit: $1.13 billion

Facebook also shared user numbers. As of the end of Q4'2014;

  • 890 million daily users
  • 1,19 billion mobile monthly users
  • 745 million daily mobile users
  • 526 million mobile only users (Yes, that's right. More than half a billion users access to Facebook only from their mobile device.)

 

Amazon’s Mixed Q4 2014 With $29.33B Revenue

Amazon announced profits in Q4'14 after announcing losses for the past two quarters. Most analysts claim that Amazon is getting back on track after the unsuccessful launch of Fire Phone.

Q4'2014 Revenue: $29.33 billion
Q4'2014 Profit: $214 million

Amazon CEO Jeff Bezos did not share the exact number of Prime members in the press release but he stated that the number of Prime members has increased by 53% compared to last year. I believe Prime membership model supported by extra value added features such as Prime Music and Prime Instant Video (and who knows maybe Prime Video Games in the future) is a great way of monetization strategy for Amazon.


Restaurant Discovery App Zomato Acquires Turkey’s Mekanist For Cash

This is a great news from Turkey as we don't see that many exits from Turkish start-ups / companies. Launched in India, Zomato is a restaurant discovery service which is similar to Yelp. By the time Yelp and Zomato entered to Turkey, Mekanist has already established itself as the first player in this service segment.

This move shows that Zomato is pretty serious about their internationalization strategy to expand outside of the India. I believe Zomato acquired Mekanist because of its user base and vast content including high number of restaurant reviews.

Here are some statistics as of July 2014 from Mekanist website.

  • 1,3 million registered users and 1,2 million mobile users
  • 190k registered places and more than 700k user reviews
  • 2,5 million unique visitors (web and mobile combined)
  • 5,5 million monthly web site visits/impressions

Huge congratulations to Eren Baydemir and Ali Servet Eyüboğlu, founders of Mekanist.


Hereby, we came to the end of the third episode of ‘Week in a Nutshell’ series.

If you enjoyed this post, I'd be happy if you could comment, share, like and/or recommend it. 

Thanks,
Birkan