Posts tagged with "Fiscal year"

Virtual Meeting illustration by Heather Skovlund for 360 Magazine

Zoom Hits A Record High

Zoom Hit a Record High Quarterly Revenue of $882.5 Million, Almost a 370% Increase YoY

Zoom’s revenues skyrocketed last year as global demand for online meeting solutions soared amid the COVID-19 lockdown. Although the popular video conferencing platform generated impressive revenue through its fiscal year 2021, the year’s final quarter set a new record.

According to data presented by BuyShares, Zoom hit a record high quarterly revenue of $882.5 million in Q4 FY 2021, almost a 370% increase year-over-year.

Annual Revenue Soared by 700% in Two Years

Unlike many other sectors, the video conferencing platforms witnessed explosive growth amid the COVID-19 crisis, as millions of people started working from home. However, Zoom emerged as the most preferred platform for holding virtual meetings. As countries across the globe-imposed lockdowns, family members also turned to Zoom as a way of keeping in touch with each other. Museums, theatres, and schools chose the platform to maintain normal operations.

With the ban on social gatherings, Zoom also became a cultural phenomenon through hosting parties, concerts, church services, and art shows. The surge in the number of users led to a 700% revenue growth in two years.

In the fiscal year 2019, Zoom generated $330.5 million in revenue, revealed the company’s earnings report. Over the next twelve months, this figure jumped by more than 88% to $626.6 million. The two-digit increase was driven by a strong Q4 FY 2020, matching the period between January and March 2020, when the pandemic already struck. Zoom’s quarterly revenue jumped by 78% YoY in this three-month period and hit $188 million.

The strong increasing trend continued in the following months, with revenue rising to $328.1 million in the second quarter of the calendar year 2020. Statistics show this figure more than doubled in the next three-month period and hit $663.5 million.

However, the fourth quarter of the fiscal year 2021, matching the period between January and March 2021, delivered the highest quarterly revenue in Zoom`s history, causing annual revenues to rise above the expectations to $2.65bn.

Almost 70% of that value, or $1.83bn, was generated in the Americas as the largest Zoom market. Users from the EMEA region, as the second-largest market, generated $486 million in revenue. Asia followed with $332.8 million, respectively.

Market Cap Soared by 357% Year-Over-Year

While the Zoom stock price has increased steadily throughout 2020, a positive announcement regarding the efficiency of a COVID-19 vaccine in November last year resulted in the price falling by more than 30% by the end of the year.

Since then, the share price has been fluctuating and in recent months saw even more of a downturn, reaching $328.95 last week.

In December 2020, the combined value of Zoom shares stood at $115.5bn, revealed the MacroTrends data. Over the last four months, this figure dropped to $96.6bn, still a 357% increase year-over-year.

The full story can be read here

Medical illustration by Heather Skovlund for 360 Magazine

Mental Illness × Addiction Crisis

With Pandemic Worsening the Mental Illness and Addiction Crisis, Biden Administration to Provide Nearly $2.5 Billion to States, Territories for Treatment, Prevention Aid

Substance Abuse and Mental Health Services Administration (SAMHSA)
Funding to Support Comprehensive Community Prevention, Treatment, Recovery and Health Services

The Biden Administration will provide nearly $2.5 billion in funding to states and territories to address the nation’s mental illness and addiction crisis, which has worsened during the COVID-19 pandemic. The Substance Abuse and Mental Health Services Administration (SAMHSA) at the U.S. Department of Health and Human Services (HHS) will direct $1.65 billion in Substance Abuse Prevention and Treatment Block Grant funding and $825 million in Community Mental Health Services Block Grant funding to states and territories. The Community Mental Health Services Block Grant program allows states and territories to provide comprehensive community mental health services and address needs and gaps in existing treatment services for those with severe mental health conditions. The Substance Abuse Prevention and Treatment Block Grant program allows states and territories to plan, implement and evaluate activities to prevent and treat substance use disorder. This funding will also allow recipients to maximize efficiency in existing treatment and recovery infrastructure, promote support for providers and address unique local needs to deliver substance use disorder prevention.

“We know multiple stressors during the pandemic – isolation, sickness, grief, job loss, food instability, and loss of routines – have devastated many Americans and presented unprecedented challenges for behavioral health providers across the nation,” said Acting Assistant Secretary for Mental Health and Substance Use Tom Coderre. “During this time of increased urgency, we want to assure them that funding is in place to help states and territories provide pathways to prevention, intervention, treatment, and recovery services, especially for underserved populations.”

Recently, the U.S. Centers for Disease Control and Prevention released data confirming a rise in fatal overdoses during the pandemic. This year’s increases in calls to helplines across the country indicate growing anxiety, depression, and trauma in Americans. The COVID-19 pandemic and the corresponding economic crisis have been especially devastating for Black and Latino communities, which are experiencing a disproportionate number of COVID-19 infections and deaths as well as higher-than-average unemployment rates.

“SAMHSA resources connect Americans to evidence-based treatment and services every day,” said Coderre. “Focusing on both mental and substance use disorders – challenges that pre-date the COVID-19 pandemic but that have worsened over the past year – will be a crucial part of SAMHSA’s approach to helping the nation move forward.”

In addition to the $2.5 billion awarded today, SAMHSA has awarded $686 million in Certified Community Behavioral Health Clinics (CCBHC) Expansion Grants; Emergency Grants to Address Mental and Substance Use Disorders During COVID-19 (Emergency Response COVID-19), and supplements to the fiscal year 2020 Emergency Response COVID-19 grant recipients.

Funding allocation tables can be viewed here:

FY 2021 Community Mental Health Block Grant Program COVID-19 Supplemental Awards

FY 2021 Substance Abuse Prevention and Treatment Block Grant Program COVID-19 Supplemental Awards

People searching for treatment for mental or substance use disorders can find treatment by visiting SAMHSA’s website or by calling SAMHSA’s National Helpline,
1-800-662-HELP (4357).

VMware’s SaaS and Subscription Revenue Spikes in Oct. 2020

VMware’s SaaS and Subscription Revenue Spikes by 44% to $676 Million in October 2020

SaaS and subscription revenue of its VMware surpassed its on-premises license revenue for the first time in its Q3 fiscal year 2021 which ended in October 2020.

According to the research data analyzed and published by Comprar Acciones, VMware’s SaaS and subscription revenue for Q3 FY21 totaled $676 million. That marked an increase of 44% year-over-year (YoY) and accounted for 24% of the company’s total revenue. It is $37 million higher than the $639 million revenue of its on-premises license segment.

Global IT Spending to Shed $300 Billion in 2020 as Cloud Spending Surges 6.3%

Global spending on data center systems is expected to drop 10% to $188 billion in 2020 according to Gartner. At the same time, cloud system infrastructure services are estimated to grow from $41 billion in 2019 to $63 billion in 2020.

Gartner also projects that SaaS solutions will generate $104.7 billion in 2020. The figure was $102.1 billion in 2019 and is set to grow to $121.0 billion in 2021, and further to $140.6 billion in 2022.

According to a study by IDC, In Q1 2020, on-premises IT spending sank by 16.3% YoY, while cloud spending grew by 2.2%. Similarly, in Q2 2020, traditional IT spending fell by 8.7% YoY while cloud spending soared by 34.4% YoY.

Q3 2020 saw a 33% YoY upsurge in global cloud spending to reach $36.5 billion according to a forecast by Canalys. That was $2 billion higher than Q2 2020 and $9 billion higher than Q3 2019.

Moreover, Gartner projects that global IT spending will decline by 8% YoY in 2020 to $3.5 trillion, down from $3.8 trillion in 2019, which means that the drop will be a massive $300 billion. However, cloud spending will grow by 6.3% during the same period.

The full story, statistics and information can be found here.

for use by 360

Steve Madden x Financial Results

Steve Madden Announces Fourth Quarter and Full Year 2019 Results 

Steve Madden (Nasdaq: SHOO), a leading designer and marketer of fashion-forward footwear, accessories and apparel for women, men and children, today announced financial results for the fourth quarter and full-year ended December 31, 2019, and provided initial fiscal year 2020 revenue and EPS guidance.

Amounts referred to as “Adjusted” exclude the items that are described under the heading “Non-GAAP Adjustments.” The Company reclassed commission and licensing fee income to Total Revenue and reclassed its respective expenses into Operating Expenses from previously labeled Commission and Licensing Fee Income – Net on the Company’s Consolidated Statement of Operations for each period provided. For the Fourth Quarter 2019: Revenue increased 0.7% to $419.6 million compared to $416.8 million in the same period of 2018.

Gross margin was 37.7% compared to 38.1% in the same period last year. Adjusted gross margin was 37.8% in 2019.

Operating expenses as a percentage of revenue were 33.1% compared to 32.1% in the same period of 2018. Adjusted operating expenses as a percentage of revenue were 30.0% compared to 29.0% in the same period of 2018.

Income from operations totaled $19.5 million, or 4.6% of revenue, compared to $25.0 million, or 6.0% of revenue, in the same period of 2018. Adjusted income from operations was $33.0 million, or 7.9% of revenue, compared to Adjusted income from operations of $37.9 million, or 9.1% of revenue, in the same period of 2018.

Net income attributable to Steven Madden, Ltd. was $17.8 million, or $0.21 per diluted share, compared to $12.5 million, or $0.15 per diluted share, in the prior year’s fourth quarter. Adjusted net income attributable to Steven Madden, Ltd. was $32.2 million, or $0.39 per diluted share, compared to $35.7 million, or $0.42 per diluted share, in the prior year’s fourth quarter.

Edward Rosenfeld, Chairman and Chief Executive Officer, commented, “We are pleased to have achieved Adjusted diluted EPS at the high end of our guidance range for the fourth quarter and full year 2019. Fiscal year 2019 was a strong year for the Company, with revenue and Adjusted diluted EPS increasing mid-single digits on a percentage basis compared to the prior year despite significant headwinds from the bankruptcy of Payless ShoeSource and the tariffs implemented on accessories, footwear and apparel from China.

“Looking ahead, while we are cautious on the near-term outlook due to additional headwinds from the coronavirus outbreak, China tariffs and the termination of the Kate Spade footwear license, we are confident that the strength of our brands and our business model will enable us to drive earnings growth and shareholder value creation over the long term.”

Fourth Quarter 2019 Segment Results
Revenue for the wholesale business decreased 1.1% to $313.8 million in the fourth quarter of 2019 due primarily to a decrease in wholesale accessories/apparel revenue. Wholesale footwear revenue declined 0.2% with a decline in the branded business offset by a gain in private label. Wholesale accessories/apparel revenue decreased 3.6% driven by declines in private label handbags and cold weather accessories, partially offset by the addition of the BB Dakota apparel business. Gross margin in the wholesale business decreased to 29.2% compared to 30.1% in last year’s fourth quarter driven by tariffs on goods imported from China.

Retail revenue in the fourth quarter rose 8.7% to $101.1 million compared to $93.0 million in the fourth quarter of the prior year. Same store sales increased 6.7% in the quarter driven by strong performance in the Company’s e-commerce business. Retail gross margin was 61.2% in the fourth quarter of 2019 compared to 61.0% in last year’s fourth quarter. Adjusted gross margin in the retail segment increased to 61.6% in the fourth quarter of 2019 compared to 61.0% in the fourth quarter of the prior year due to a reduction in promotional activity.

The Company ended the quarter with 227 company-operated retail locations, including eight Internet stores, as well as 31 company-operated concessions in international markets.

The Company’s effective tax rate for the fourth quarter of 2019 was 15.9% compared to 52.7% in the fourth quarter of 2018. On an Adjusted basis, the effective tax rate was 6.3% compared to 9.2% in the fourth quarter of the prior year due to the impact of the year-over-year benefit resulting from the exercising and vesting of share-based awards.

Full Year Ended December 31, 2019

For the full year ended December 31, 2019, revenue increased 6.5% to $1.8 billion from $1.7 billion in the prior year.

Net income attributable to Steven Madden, Ltd. was $141.3 million, or $1.69 per diluted share, for the year ended December 31, 2019 compared to net income of $129.1 million, or $1.50 per diluted share, for the year ended December 31, 2018. On an Adjusted basis, net income attributable to Steven Madden, Ltd. was $162.8 million, or $1.95 per diluted share, for the year ended December 31, 2019 compared to net income of $157.7 million, or $1.83 per diluted share, for the year ended December 31, 2018.

Balance Sheet and Cash Flow
During the fourth quarter of 2019, the Company repurchased 589,809 shares of the Company’s common stock for approximately $25.3 million, which includes shares acquired through the net settlement of employee stock awards. For the full year ended December 31, 2019, the Company repurchased 3.0 million shares of the Company’s common stock for approximately $101.8 million, which includes shares acquired through the net settlement of employee stock awards.

As of December 31, 2019, cash, cash equivalents and current marketable securities totaled $304.6 million.

Quarterly Dividend
The Company’s Board of Directors approved a quarterly cash dividend of $0.15 per share. The dividend will be paid on March 27, 2020, to stockholders of record at the close of business on March 17, 2020.

Fiscal Year 2020 Outlook

For fiscal year 2020, the Company expects revenue will increase 0% to 1% over revenue in 2019. The Company expects diluted EPS for fiscal year 2020 will be in the range of $1.70 to $1.80. Compared to the prior year, the diluted EPS range reflects an adverse impact of approximately $0.35 from the combined impact of the coronavirus, tariffs on goods from China, the termination of the Kate Spade footwear license and a higher anticipated tax rate.

Non-GAAP Adjustments

Amounts referred to as “Adjusted” exclude the items below.

For the fourth quarter 2019:

$8.9 million pre-tax ($8.9 million after-tax) vendor support associated with the Payless ShoeSource bankruptcy, included in operating expenses.

$4.0 million pre-tax ($3.0 million after-tax) expense in connection with a provision for a legal settlement and related fees, included in operating expenses.

$0.4 million pre-tax ($0.3 million after-tax) expense in connection with the termination of a joint venture, included in cost of goods sold; $0.2 million pre-tax ($0.1 million after-tax) expense in connection with the termination of a joint venture, included in operating expenses; and $0.2 million after-tax income in connection with the termination of a joint venture, included in net loss attributable to noncontrolling interest.

$0.04 million pre-tax ($0.03 million after-tax) expense in connection with the acquisitions of GREATS and BB Dakota, included in operating expenses.

$2.2 million tax expense in connection with deferred tax and other tax adjustments.

For the fourth quarter 2018:

$12.1 million pre-tax ($11.5 million after-tax) in bad debt expense and write-off of an unamortized buying agency agreement support payment associated with the Payless ShoeSource bankruptcy, included in operating expenses.

$0.5 million pre-tax ($0.3 million after-tax) expense in connection with a provision for early lease termination charges, included in operating expenses.

$0.3 million pre-tax ($0.2 million after-tax) expense in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring, included in operating expenses.

$11.1 million tax expense resulting from the Tax Cuts and Jobs Act transition tax and prepaid tax adjustments related to prior years.

For the fiscal year 2019:

$8.7 million pre-tax ($8.6 million after-tax) vendor support, net of recovery of bad debt expense associated with the Payless ShoeSource bankruptcy, included in operating expenses.

$5.4 million pre-tax ($4.1 million after-tax) expense in connection with early lease termination charges and the impairment of lease right-of-use assets.

$4.1 million pre-tax ($3.0 million after-tax) non-cash expense associated with the impairment of the Brian Atwood trademark.

$4.0 million pre-tax ($3.0 million after-tax) expense in connection with provision for a legal settlement and related fees, included in operating expenses.

$1.9 million pre-tax ($1.4 million after-tax) net benefit associated with the change in a contingent liability and the acceleration of amortization related to the termination of the Kate Spade license agreement as of December 31, 2019.

$1.1 million pre-tax ($0.8 million after-tax) expense in connection with the acquisitions of GREATS and BB Dakota, included in operating expenses.

$0.7 million pre-tax ($0.5 million after-tax) expense in connection with a divisional headquarters relocation.

$0.4 million pre-tax ($0.3 million after-tax) expense in connection with the termination of a joint venture, included in cost of goods sold; $0.2 million pre-tax ($0.1 million after-tax) expense in connection with the termination of a joint venture, included in operating expenses; and $0.2 million after-tax income in connection with the termination of a joint venture, included in net income attributable to noncontrolling interest.

$2.6 million tax expense in connection with deferred tax and other tax adjustments.

For the fiscal year 2018:

$12.1 million pre-tax ($11.5 million after-tax) in bad debt expense and write-off of an unamortized buying agency agreement support payment associated with the Payless ShoeSource bankruptcy, included in operating expenses.

$2.8 million pre-tax ($2.1 million after-tax) expense in connection with a provision for a settlement, included in operating expenses.

$2.1 million pre-tax ($1.5 million after-tax) expense in connection with the integration of the Schwartz & Benjamin acquisition and the related restructuring, included in operating expenses.

$1.2 million pre-tax ($0.9 million after-tax) expense in connection with a warehouse consolidation, included in operating expenses.

$1.0 million tax expense in connection with the impairment of the preferred interest investment in Brian Atwood Italia Holding, LLC recorded in fourth quarter 2017.

$0.5 million pre-tax ($0.3 million after-tax) expense in connection with a provision for early lease termination charges, included in operating expenses.

$11.1 million tax expense resulting from the Tax Cuts and Jobs Act transition tax and prepaid tax adjustments related to prior years.

Reconciliations of amounts on a GAAP basis to Adjusted amounts are presented in the Non-GAAP Reconciliation tables at the end of this release and identify and quantify all excluded items.

Conference Call Information

Interested stockholders are invited to listen to the fourth quarter and fiscal year 2019 earnings conference call scheduled for today, February 27, 2020 at 8:30 a.m. Eastern Time. The call will be broadcast live over the Internet and can be accessed by logging onto http://stevemadden.gcs-web.com. An online archive of the broadcast will be available within two hours of the conclusion of the call and will be accessible for a period of 30 days following the call.

About Steve Madden

Steve Madden designs, sources and markets fashion-forward footwear, accessories and apparel for women, men and children. In addition to marketing products under its own brands including Steve Madden®, Dolce Vita®, Betsey Johnson®, Blondo®, Report®, Brian Atwood®, Cejon®, GREATS®, BB Dakota®, Mad Love® and Big Buddha®, Steve Madden is a licensee of various brands, including Anne Klein®, Superga® and DKNY®. Steve Madden also designs and sources products under private label brand names for various retailers. Steve Madden’s wholesale distribution includes department stores, specialty stores, luxury retailers, national chains and mass merchants. Steve Madden also operates 227 retail stores (including eight Internet stores). Steve Madden licenses certain of its brands to third parties for the marketing and sale of certain products, including ready-to-wear, outerwear, eyewear, hosiery, jewelry, fragrance, luggage and bedding and bath products. For local store information and the latest Steve Madden booties, pumps, men’s and women’s boots, fashion sneakers, dress shoes, sandals and more, visit http://www.stevemadden.com.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements regarding revenue and earnings guidance, plans, strategies, objectives, expectations and intentions. Forward-looking statements can be identified by words such as: “may”, “will”, “expect”, “believe”, “should”, “anticipate”, “project”, “predict”, “plan”, “intend”, or “estimate”, and similar expressions or the negative of these expressions. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they represent the Company’s current beliefs, expectations and assumptions regarding anticipated events and trends affecting its business and industry based on information available as of the time such statements are made. Investors are cautioned that such forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which may be outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in these forward-looking statements. As such, investors should not rely upon them. Important risk factors include:

  • the Company’s ability to accurately anticipate fashion trends and promptly respond to consumer demand
  • the Company’s ability to compete effectively in a highly competitive market
  • the Company’s ability to adapt it business model to rapid changes in the retail industry
  • the Company’s dependence on the retention and hiring of key personnel
  • the Company’s ability to successfully implement growth strategies and integrate acquired businesses
  • the Company’s reliance on independent manufacturers to produce and deliver products in a timely manner, especially when faced with adversities such as work stoppages, transportation delays, public health emergencies, social unrest, changes in local economic conditions, and political upheavals as well as meet the Company’s quality standards
  • changes in trade policies and tariffs imposed by the United States government and the governments of other nations in which the Company manufactures and sells products
  • disruptions to product delivery systems and the Company’s ability toproperly manage inventory
  • the Company’s ability to adequately protect its trademarks and other intellectual property rights; legal, regulatory, political and economic risks that may affect the Company’s sales in international markets
  • changes in U.S. and foreign tax laws that could have an adverse effect on the Company’s financial results; additional tax liabilities resulting from audits by various taxing authorities
  • the Company’s ability to achieve operating results that are consistent with prior financial guidance
  • other risks and uncertainties indicated from time to time in the Company’s filings with the Securities and Exchange Commission.

The Company does not undertake any obligation to publicly update any forward-looking statement, including, without limitation, any guidance regarding revenue or earnings, whether as a result of new information, future developments or otherwise.

STEVEN MADDEN, LTD. AND SUBSIDIARIES

Operations Data, Balance Sheet Data, Cash Flow Data, and Non-GAAP Reconciliation can be viewed HERE.