Brand Finance is the world’s leading brand valuation consultancy, with offices in over 20 countries.

Brand Finance bridges the gap between marketing and finance by quantifying the financial value of brands.


Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671.
Brand Finance is a chartered accountancy firm regulated by the Institute of Chartered Accountants in England and Wales (ICAEW), and also the first brand valuation consultancy to join the International Valuation Standards Council (IVSC).

Brand Finance bridges the gap between marketing and finance by quantifying the financial value of brands. Drawing on expertise in strategy, branding, market research, visual identity, finance, tax, and intellectual property, Brand Finance helps brand owners and investors make the right decisions to maximise brand and business value.
Brand Finance, bridging the gap between marketing and finance.


Founded in 1998 in London by David Haigh,

it is present in Spain directed by Teresa de Lemus.

Madrid´s office has participated in brand valuation reports, marketing ROI analysis and strategic decisions, brand changes after an acquisition, brand strategies to increase market share or as an expert witness in legal procedures on loss of reputation. Some of our Spanish clients have been: Santander, Chupa Chups, Telefónica, Cepsa, Canal de Isabel II, LaLiga among others.

We are different from our technical rigor since we use an internationally endorsed methodology.

Brand Finance helped craft the internationally recognised standard on Brand Valuation – ISO 10668, and the recently approved standard on Brand Evaluation – ISO 20671. The company is part of ICAEW and is the first brand valuation consultant to join the IVSC International Committee on Valuation Standards.

The Brand Finance methodology used in the preparation of the annual rankings on the most valuable and strong brands in the world, is certified by the North American Marketing Accountability Standards Board (MASB) and complies with the Marketing Metric Audit Protocol (MMAP) audit protocols.).
We are very proud that, since 2020, the UN Global Innovation Index (GII) incorporates our brand value database to create one of the indicators by strengthening the weight of the brand category in its analysis.
We are defined by the slogan, “bridging the gap between marketing and finance” as we study and analyse the impact and role of “brand” in the turnover and value of business. We dedicate all our efforts in valuing the importance of intangible assets, particularly branding, to business results. We help brands study and analyse the benefits of intangible assets as well as the behavior of brand drivers in adding value to marketing and finance teams.

  

Every year, Brand Finance analyses over 5,000 of the world’s most valuable and strongest brands. Our database is one of our strengths and gives us a profound knowledge of the past, present, and future across sectors, allowing us to predict trends.

Using this plethora of information, we publish over 40 sector rankings and reports every year, publicizing the value of brand to businesses. The Brand Finance Global 500 is our yearly study of the 500 most valuable brands in the world. According to the latest report, SantanderZaraMovistarBBVAEl Corte Inglés, Iberdrola and Mercadona stood out as the most internationally recognized Spanish brands.

 

Spanish luxury brand, LOEWE, is among the 50 most valuable luxury and premium brands in the world, according to the Brand Finance Luxury & Premium 50 2020 report.
The sector has been highly impacted by the pandemic in both the fall in consumption as well as international mobility restrictions, but LOEWE has managed to overcome and increase its two main brand indicators: brand value and brand strength. LOWE’s brand value has increased by 21.5% since 2019, rising four places in the ranking to the 32nd spot, Valentino, Salvatore Ferragamo, Versace, and Dolce and Gabana in the apparel sector.

Teresa de Lemus, Managing Director, Brand Finance Spain, commented:“The value of the LOEWE brand represents Spain, contributing 0.7 to the total ranking and positioning our nation in the top 10 (rank 8), being the brand that contributes the most to the total sectoral value. This sector value this year is 232.7 billion euros, 10.4% higher than in 2019. “

Without a doubt, the most awaited report in our country is the Brand Finance Spain 100 which analyses the 100 most valuable Spanish brands. The seven brands included in the Global 500 report are joined by Mapfre, Repsol, and CaixaBank which feature in the top 10 nationally.

THE VALUE OF NATIONS

In addition to corporate brands, we also analyze other intangibles such as the reputation, soft power or influence of nations and country brands, among others. We measure the influence
of countries and the attributes that are most internationally recognized in the Brand Finance Global Soft Power Index report. At the beginning of 2020 we had the presence of Ban Ki Moon, eighth UN Secretary General, at the presentation of the report in London and Oxford. According to the 2020 report, Spain stands out
internationally as the friendliest nation in the world.

The world considers the Spanish to be the nation with the most fun and friendly inhabitants in the world. Those born in the land of quiet lunches, long nights of fun, flamenco, a taste for sharing time together eating or soccer are incredibly popular around the world. This is largely due to the fact that Spain undoubtedly continues to be an international benchmark as a nation of leisure and tourism, a sector that contributed 14.6% to national GDP in 2019.

Overall, Spain ranks 16th out of a total of 60 nations on the Index, with a final score of 47.6 out of 100. Despite the positive results in People & Values, Spain’s performance is not so much in other
areas, such as Governance, International Relations or Education & Science. Recent problems involving Catalonia, problems in building a coalition government, corruption scandals and the persistent effects of the Great Recession are likely to be responsible for these results. Strength and stability at home are obviously a precursor to influence abroad.

Brand Finance Group draws on brand valuation, strategy and knowledge experience to advise brands around the world. Brand Dialogue is the Brand Finance Group company specialized in
building and measuring communication strategies that add greater value to the brand. Supports Brand Finance customers and own customers to effectively design and communicate brand strategies.

“We understand communication as a business lever. We analyze and measure the attributes of the brand strength that act as levers in the communication of each brand and sector. On this analytical basis, we build communication strategies that increase brand value and business sales figure.” Cristina Campos, Managing Director of Brand Dialogue Spain.

Brand Dialogue and Brand Finance are helping clients to solve brand problems using advanced financial assessment techniques and market research analysis to obtain valid information and
recommendations and a solid foundation and basis in values.

Fernando Salazar Palma – Executive President CESCE

Fernando Salazar is a Commercial Technician and State Economist, with a degree in Economics and Business Administration and a Master’s in Public Administration (Fulbright scholarship at the Maxwell School of Public Affairs, Syracuse University. New York). With a broad professional career, he has been, since 2016, Deputy Director General of Financial Promotion of Internationalization. Previously, he was Chief Advisor in the Economic and Commercial Office in Brasilia between 2012 and 2016, a position he arrived at from ICEX where he was Executive Vice President of the Spanish Institute of Foreign Trade (ICEX) between 2010 and 2011.

Also within the General Administration of the State, The new president of CESCE, has held various management positions in the field of trade policy and multilateral financial institutions: he has been Chief Counsel in the Economic and Trade Office of the Spanish Embassy in Beijing, China (2007-2010), Chief Cabinet of the Secretary of State for Tourism and Trade (2004-2007) of the Ministry of Industry, Commerce and Tourism of Spain, Advisory Member in the General Sub-Directorate of Financial Promotion of Export (2002-2004) of the Ministry of Economy of Spain, Consultant at the Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) (1998-2001), Deputy Deputy Director General for Trade Policy Mult ilateral (1992-1994) and Territorial Director of Commerce in Castilla y León (1991-1992). Good connoisseur of the business and operation of CESCE, a company in which he has been a member of the Board of Directors on two occasions, the first between 2004 and 2007 and the second from 2016 to the date of his appointment as Chairman.

The CESCE Group reinforces the treatment of its financial information

The CESCE Group reinforces the treatment of its financial information

The organization has implemented SAP BPC technology to gain security and speed in the economic, accounting, commercial and budgetary consolidation of data

Madrid, December 23, 2020.- The CESCE Group has modernized and reinforced its system for consolidating Financial Statements, in a clear commitment to innovation and digitization, two objectives included in its Strategic Plan 2021-2024. The Group, made up of 27 companies that follow the regulations of insurance companies or accounting plans according to their activity, has chosen SAP BPC technology to integrate all the financial data of the different companies and thus automate the extraction of information and consolidation tasks to facilitate corporate reporting.

Through the implementation of this new technology, the CESCE Group has endowed professionals with greater autonomy and thanks to this it has achieved an automation in obtaining the consolidated Financial Statements. In addition, real-time data collection times have been optimized, which has improved process control, and greater traceability, security and scalability of information have been gained.

According to María Aracama, Head of the CESCE Group’s Latam Consolidation and Control Unit, “this project has provided us with an agile, flexible and usable platform to improve the economic, accounting, commercial and budget consolidation of all group companies, facilitating information in real time when making strategic decisions for the business ”.

The new SAP BPC technology tool implemented by the CESCE Group also offers the ability to integrate with other technological tools, the possibility of centralizing the data in a single place and adaptation to current regulatory policies and procedures.

THE BIG READXR IN TODAY’S REALITY

XR in Today’s Reality

To complement our RISE Spotlight event on XR, Amelia Kallman, futurist, author and chair of ISE’s XR Summit, reviews some of the areas where these technologies are making their mark right now.

While XR (extended reality) technologies have been hyped since 2014, it’s only now in the midst of the 2020 coronavirus pandemic and global economic crisis that we are really seeing the true value of virtual, augmented and mixed realities as vital to the future of business success. Across industries including healthcare, manufacturing, education, design, tourism, consumer goods and marketing, XR is helping companies secure the competitive advantage needed to survive and thrive in the years to come.

The greatest challenge the XR community faces is one the industry created itself. Early hype and evangelical proclamations oversold the limited abilities of VR and AR technologies in the early days, fuelling disappointed expectations which the industry has been trying to crawl back from for years. It may be helpful to remember that while AR and VR have been developing next to each other since the 1960s, the industry as we know it today is less than seven years old. That said, the improvements in such a relatively short period have been remarkable, but even so, people adapt and adopt at a much slower pace than the big tech companies often presume.

Forecasts and futures

It’s too simple to judge the success of this industry on how many headsets have been sold (or not sold); instead we should focus on the true business cases for XR. The future of the industry relies on its ability to live up to the promises that XR can save companies time and money, accelerate processes, measure engagement, bring people together in unique and memorable ways, and create new revenue streams that don’t only justify costs, but proportionally outweigh them.

It is projected that by 2030 XR will boost the global economy by $1.5 trillion, with the growth of jobs enhanced by VR and AR jumping from under one million in 2019, to over 20 million by 2030. This growth will partially be attributed to the prevalence of edge computing and 5G. Edge computing is the practice of capturing, processing and analysing data near where it is created, and 5G is super high-speed internet. These innovations will provide the practical infrastructure necessary for mass transmission of large data sets at higher speeds, ensuring a seamless immersive experience anywhere at any time, whether it’s through a mobile, laptop or headset. Reducing latency, improving image quality, and enabling new ecosystems of high-volume, real-time data applications, these expediting capabilities will bolster the viability and benefits of XR in our everyday lives.

Fighting Covid, tackling lockdown

One recent example from the medical industry of how VR is being used to save time and money while enabling collaboration is iMD-VR. A team of scientists from the University of Bristol have been using VR and cloud computing as a means to assist the medical community in the global fight against Covid-19. They’ve created a 3D model researchers can step inside to visualise the unique complexities of the virus, as well as test potential vaccines and cures via molecular dynamics simulations. This level of real-time international collaboration, as well as the ability to visualise and contextualise something invisible to the human eye, wouldn’t be possible otherwise. It is not only a great illustration of how VR can extend our capabilities beyond our physical means, but also how it can help accelerate vital knowledge sharing across geographic locations that could result in saving lives.

Many industries are turning to XR as a way to cope with their remote collaboration needs during varying stages of lockdowns around the world. Global strategic design and innovation consultancy Seymourpowell use VR to enable collaborative design across global teams, encouraging employees to dial in to participate in immersive meetings via tablet, phone, laptop or VR headset. The platform they use, Reality Works, was originally created in 2017 as a tool for their transport team to collaboratively create full-scale 3D vehicle designs, but now they’ve adapted it and expanded use throughout the company, even hosting impactful client pitches in VR and offering the platform to their clients.

Virtual meetings and events

We are seeing evidence that a short-term investment in an immersive platform and instigating a virtual meet-up work culture can save companies time and money in the long term. Earlier this year executive training organisation The Leadership Network moved all their physical masterclasses into the metaverse via their Gemba VR platform. Removing three nights’ accommodation, business travel and subsistence from the equation saved customers an average of £1,800 per person. It also cut down the hours employees had to be ‘out of office’, gaining companies 44% more productivity time throughout the week.

Under the pandemic the events industry has particularly suffered with many turning to Zoom, Hopin and Teams as an alternative to physical conferences. Between screen fatigue, the lack of networking options, and every event starting to look and feel the same, there is a good case to be made for the advantages of hosting in VR. European VR/AR tradeshow Virtuality completely digitalised their physical arena to reflect everything you might expect from a conference space: exhibition halls, booths, auditoriums, networking lounges, all accessible from anywhere in the world via PC, Mac and Oculus Quest. To accomplish this they’ve partnered with Manzalab Group using their digital solution Teemew Event. Many VR platforms designed to support meetings have expanded their offer to include conferencing features, like the immersive education platform Engage, which can now host up to 150 people at one time. It is unique in that it offers full bodied avatars, the ability to run events inside 360 videos, and it also offers spatial recording, which means post-event people can still experience a fully 3D replay.

Tracking eyes, hands… and brains

Advancements in eye and hand-tracking capabilities now included in many headsets offer new ways to measure customer engagement and prove ROI. A global consumer goods corporation partnered with Accenture to build a multi-user VR merchandising evaluation system where they can safely host customer focus groups to evaluate the effectiveness of product placement, advertisements and store layouts before making costly decisions. The simulation ultimately resulted in higher product sales and a greater profit margin as they were able to effectively market test before implementation, ensuring that when it came to deployment they got it right the first time.

Taking things one step further, the integration of bio-data or brain-computer-interface (BCI) technology into headset experiences can give us an even deeper insight into the nuances of customer behaviour and decision-making. EEG brainwave technology MyndPlay was integrated into OculusGo headsets to allow marketers to see which adverts perked an individual’s attention the most so they could then offer people a more personalised product. With recent studies showing 80% of customers are more likely to purchase a product or service from a brand who provides personalised recommendations and experiences, this is a trend we may see more of in the years to come.

The role of social

Using augmented reality to let shoppers ‘try before you buy’ has become even more important to retailers in 2020, adding value to the at-home shopping experience. Earlier this year Gucci partnered with Snapchat for the platform’s first global branded AR shoe try-on lenses. The AR lens overlays a digital version of four pairs of shoes on a mobile user’s feet and allows immediate purchasing via the Snap app. According to Snap data, Snapchat reaches 75% of people ages 13 to 34 and 90% of people ages 13 to 24 in the US, helping brands bond with Gen Z. Also attempting to engage the next generations, Burger King ran an immersive sweepstake during the MTV VMAs that asked viewers to scan an onscreen QR code to activate an AR experience featuring rapper Lil Yachty. People were treated to an exclusive performance, as well as coupons. This drove downloads of their app, which has become crucial to many quick-service brands since the pandemic.

The adoption of AR into our everyday lives through social media platforms like Snap and Instagram was so gradual and natural many people don’t even realise they’re using AR technology. AR has enjoyed a faster consumer adoption than the uptake of VR for several reasons: It’s less expensive to create and free to use, it can be activated through hardware we all already own and have on our bodies most of the time, and it services a very basic function, even if that function is to simply make us look cool online.

The evolution of AR and MR (mixed reality) technologies has the potential to be quite profound however, fundamentally changing the way we interact with the world around us. Recently acquired by FacebookScape Technologies uses AI, computer vision and cloud computing to geopin AR and MR content to specific locations. Effectively this means that in the future the entire world will become real estate for interactive, shoppable digital signage viewed via phones, glasses and, sooner than one may think, contact lenses or implants. While today we might use AR to map a path to physical locations while receiving pop-up ads on our phones, tomorrow these ads may be integrated and activated by our physical environments opening up new opportunities for personalisation, gamification and revenue streams. As we go back to physical environments, whether it be retail shops or museums or other entertainment facilities, AR activations will play a significant in role in our ability to deliver information and engaging experiences while keeping everyone safe.

Moving off mobile

Moving this engagement from the mobile to a ‘heads up’ experience is a space many start-ups are currently vying for. Predicted to disrupt the dreams of young companies in this arena is Apple, which has secured a number of patents for its forthcoming AR glasses. Said to use the iPhone as the computer behind the glasses’ AR functions, this would instantly give Apple a market advantage, as well as remove the weight and subsequent unattractiveness of many of the prototypes we’ve been seeing. One of Apple’s latest patents focused on the ability of lenses to automatically adjust according to the eyesight of its user. It suggests that the optical module associated with individual eyes will be able to modify displayed images to correct the user’s vision.

News of fresh innovations coming to the world of XR, along with evidence of the formation of subindustries, indicate that the industry is continuing to evolve and mature. As the technologies become more democratised, price points will continue to come down and uptake will continue to go up. With alpha-innovators beginning to prove ROI as a result of XR, more companies will have to follow suit if they want to stay in the game. While some might view the constant developments and upgrades as a sign to hold off investment until the hype curve has flattened, the companies adopting these technologies today know that by then it will be too late.

RISE Spotlight: XR in Today’s Reality took place on 15 December 2020. You can find out about the RISE Spotlight series here.

www.ameliakallman.com
@ameliakallman
@TheBigRevealUK

Amelia Kallman
Futurist – Speaker – Author


Amelia Kallman is a leading London futurist, speaker and author. As an innovation and technology communicator, Amelia regularly consults brands, agencies, and governments on the impact of new technologies on the future of business and our lives. She forecasts global trends and behaviours, helping clients navigate innovation, build strategies and deliver industry leading initiatives. She specialises in the emerging opportunities – as well as the risks – of machine learning and AI, big data, IOT, and the New Realities (XR: VR-AR-MR). Recent areas of study include the future of social media, the XR internet, edge computing, and the surfacing human rights issues of tomorrow. She produces and hosts the annual XR Summit as part of ISE and also hosts the XR Star podcast for AV Nation. Amelia’s writing is often featured in WIRED UK, IBC365, and The Big Reveal, her popular innovation newsletter and YouTube channel. Clients include Unilever, Tata Communications, Vodafone, Lloyd’s of London, and UK Parliament. She is a mentor, activist, and is currently writing her next book.
www.ameliakallman.com @ameliakallman @TheBigRevealUK
Margin Trading

Margin Trading is now live on our Android and iOS Mobile Apps

We are delighted to announce that margin trading is now available on our Android and iOS apps, giving you the option to leverage funds of up to 12x on selected trading pairs via mobile.

Since its roll out on to our main web platform in July 2020, this feature has proven to be popular amongst our trading community and we have received great feedback about it. Now with its availability on both Android and iOS, we are thrilled to give you the opportunity to make margin trades on the fly and enhance your overall trading experience with us on mobile.

Margin trading on our Android and iOS apps works just like it does on our main web platform, but now you have the option of using it through the comfort of your phone. The feature allows you to open positions with smaller initial deposits and access up to 12x leverage to increase both your position size and your potential profit depending on the trading pair you choose. Moreover, just like on our web platform, you can manage your position size to ensure that in case of a partial closing of a position, your PNL (profit and loss) is calculated in proportion to the value of the position and also make sure your trades stay open by transferring more funds in and out of your margin account via your phone.

Currently, margin trading is available for a selected amount of trading pairs allowing up to 12x on BTC/USDT and ETH/USDT, 10x leverage on EOS/USDT, TRX/USDT, LTC/USDT, ETC/USDT, ADA/USDT, XMR/USDT, EOS/BTC, TRX/BTC, LTC/BTC, ETC/BTC, ADA/BTC, XMR/BTC and up to 5x leverage on BSV/USDT, ZEC/USDT, DASH/USDT, XLM/USDT, NEO/USDT, VET/USDT, DOGE/USDT, BSV/BTC, ZEC/BTC, DASH/BTC, XLM/BTC, NEO/BTC, VET/BTC, DOGE/BTC.

Read more about margin trading on HitBTC.

SAN FRANCISCO–(BUSINESS WIRE)– Pinterest, Inc. (NYSE: PINS) today announced financial results for the quarter ended September 30, 2020.

  • Q3 revenue grew 58% year over year to $443 million.
  • Global Monthly Active Users (MAUs) grew 37% year over year to 442 million.
  • GAAP net loss was $(94) million for Q3. Adjusted EBITDA was $93 million.

“More than ever before, people are coming to Pinterest to get inspiration for their lives—everything from planning early for a socially distant Halloween to creating great home schools for their kids,” said Ben Silbermann, CEO and co-founder, Pinterest. “Our top priority is to continue making Pinterest home to the most inspiring and actionable content. This quarter we launched a set of tools to empower creators to show and share their ideas with people who are ready to act.”

“The strong momentum our business experienced in July continued throughout the rest of the third quarter. We’re extremely pleased with the broad based strength of our business, driven by recovering advertiser demand as well as positive returns from our investments in advertiser products and international expansion,” said Todd Morgenfeld, CFO and Head of Business Operations, Pinterest.

 

NY, USA – DECEMBER 26, 2019: Pinterest paper logo lies with envelope full of dollar bills and smartphone

Q3 2020 Financial Highlights

The following table summarizes our consolidated financial results (in thousands, except percentages, unaudited):

Three Months Ended September 30,

% Change

2020

2019

Revenue

$

442,616

$

279,703

58

%

Net loss

$

(94,220

)

$

(124,732

)

24

%

Non-GAAP net income*

$

87,164

$

5,960

1,362

%

Adjusted EBITDA*

$

93,042

$

3,871

2,304

%

Adjusted EBITDA margin*

21

%

1

%

For more information on these non-GAAP financial measures, please see “—About non-GAAP financial measures” and the tables under “—Reconciliation of GAAP to non-GAAP financial results” included at the end of this release.

Q3 2020 Other Highlights

The following table sets forth our revenue, MAUs and average revenue per user (“ARPU”) based on the geographic location of our users (in millions, except ARPU and percentages, unaudited):

Three Months Ended September 30,

% Change

2020

2019

Revenue – Global

$

443

$

280

58

%

Revenue – United States

$

374

$

251

49

%

Revenue – International

$

69

$

28

145

%

MAUs – Global

442

322

37

%

MAUs – United States

98

87

13

%

MAUs – International

343

235

46

%

ARPU – Global

$

1.03

$

0.90

15

%

ARPU – United States

$

3.85

$

2.93

31

%

ARPU – International

$

0.21

$

0.13

66

%

Outlook

Our current expectation is that Q4 revenue will grow around 60% year over year, a modest acceleration compared to our growth rate in Q320. We continue to navigate uncertainty given the ongoing COVID-19 pandemic and other factors.

We’re also operating in a more remote working environment while maintaining investments in the long-term strategic priorities of the company. We continue to evaluate our spending as the situation evolves.

We intend to provide further detail on our outlook during the conference call.

Webcast and conference call information

A live audio webcast of our third quarter 2020 earnings release call will be available at investor.pinterestinc.com. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). We have also posted to our investor relations website a letter to shareholders. This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, letter to shareholders and slide presentation are also available. A recording of the webcast will be available at investor.pinterestinc.com for 90 days.

We have used, and intend to continue to use, our investor relations website at investor.pinterestinc.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

Forward-looking statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties, including, among other things, statements about our future operational and financial performance. Words such as “believe,” “project,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: uncertainty regarding the duration and scope of the coronavirus referred to as COVID-19 pandemic; actions governments and businesses take in response to the pandemic, including actions that could affect levels of advertising activity; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the scope and impact of the recent outbreak of COVID-19 on our planned investments, operations, expenses, revenue, cash flow, liquidity and users; our ability to attract and retain Pinners and engagement levels; our ability to provide useful and relevant content; risks associated with new products and changes to existing products as well as other new business initiatives; our ability to maintain and enhance our brand and reputation; compromises in security; our financial performance and fluctuations in operating results; our dependency on internet search engines’ methodologies and policies; discontinuation, disruptions or outages in authentication by third-party login providers; changes by third-party login providers that restrict our access or ability to identify users; competition; our ability to scale our business and revenue model; our reliance on advertising revenue and our ability to attract and retain advertisers and effectively measure advertising campaigns; our ability to effectively manage growth and expand and monetize our platform internationally; our lack of operating history and ability to attain and sustain profitability; decisions that reduce short-term revenue or profitability or do not produce expected long-term benefits; risks associated with government actions, laws and regulations that could restrict access to our products or impair our business; litigation and government inquiries; privacy, data and other regulatory concerns; our ability to protect our intellectual property; real or perceived inaccuracies in metrics related to our business; disruption, degradation or interference with the hosting services we use and infrastructure; our ability to attract and retain personnel; and the dual class structure of our common stock and its effect of concentrating voting control with stockholders who held our capital stock prior to the completion of our initial public offering. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, which is available on our investor relations website at investor.pinterestinc.com and on the SEC website at www.sec.gov. Additional information will be made available in our Quarterly Report on Form 10-Q and other future reports that we may file with the SEC from time to time, which could cause actual results to vary from expectations. All information provided in this release and in the earnings materials is as of October 28, 2020. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.

About non-GAAP financial measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative), non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP net income (loss) per share. The presentation of these financial measures is not intended to be considered in isolation, as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparative purposes. We compensate for these limitations by providing specific information regarding GAAP amounts excluded from these non-GAAP financial measures.

We define Adjusted EBITDA as net loss adjusted to exclude depreciation and amortization expense, share-based compensation expense, interest income, interest expense and other income (expense), net, provision for (benefit from) income taxes and, for the third quarter of 2020, a one-time payment for the termination of a future lease contract. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue. Non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) and non-GAAP net income (loss) exclude amortization of acquired intangible assets, share-based compensation expense and, for the third quarter of 2020, a one-time payment for the termination of a future lease contract. Non-GAAP income (loss) from operations is calculated by subtracting non-GAAP costs and expenses from revenue. Non-GAAP net income per share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding. We use Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses, non-GAAP income (loss) from operations, non-GAAP net income and non-GAAP net income per share to evaluate our operating results and for financial and operational decision-making purposes. We believe these non-GAAP financial measures help identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses they exclude. We also believe these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We present these non-GAAP financial measures to assist potential investors in seeing our operating results through the eyes of management and because we believe these measures provide an additional tool for investors to use in comparing our operating results over multiple periods with other companies in our industry. There are a number of limitations related to the use of Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses, non-GAAP income (loss) from operations, non-GAAP net income and non-GAAP net income per share rather than net loss, net margin, total costs and expenses, loss from operations, net loss and net loss per share, respectively, the nearest GAAP equivalents. For example, Adjusted EBITDA excludes certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets, although these assets may have to be replaced in the future, and share-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense and an important part of our compensation strategy.

For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the tables under “—Reconciliation of GAAP to non-GAAP financial results” included at the end of this release.

Limitation of key metrics and other data

The numbers for our key metrics, which include our MAUs and ARPU, are calculated using internal company data based on the activity of user accounts. We define a monthly active user as an authenticated Pinterest user who visits our website, opens our mobile application or interacts with Pinterest through one of our browser or site extensions, such as the Save button, at least once during the 30-day period ending on the date of measurement. We present MAUs based on the number of MAUs measured on the last day of the current period. We define ARPU as our total revenue in a given geography during a period divided by the average of the number of MAUs in that geography during the period. We calculate average MAUs based on the average between the number of MAUs measured on the last day of the current period and the last day prior to the beginning of the current period. We calculate ARPU by geography based on our estimate of the geography in which revenue-generating activities occur. We use these metrics to assess the growth and health of the overall business and believe that MAUs and ARPU best reflect our ability to attract, retain, engage and monetize our users, and thereby drive revenue. While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring usage of our products across large online and mobile populations around the world. In addition, we are continually seeking to improve our estimates of our user base, and such estimates may change due to improvements or changes in technology or our methodology.

PINTEREST, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

(unaudited)

September 30,

December 31,

2020

2019

ASSETS

Current assets:

Cash and cash equivalents

$

652,723

$

649,666

Marketable securities

996,392

1,063,679

Accounts receivable, net of allowances of $5,670 and $2,851 as of September 30, 2020 and December 31, 2019, respectively

339,274

316,367

Prepaid expenses and other current assets

44,537

37,522

Total current assets

2,032,926

2,067,234

Property and equipment, net

76,294

91,992

Operating lease right-of-use assets

164,803

188,251

Goodwill and intangible assets, net

13,814

14,576

Restricted cash

9,221

25,339

Other assets

3,980

5,925

Total assets

$

2,301,038

$

2,393,317

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

41,703

$

34,334

Accrued expenses and other current liabilities

147,946

141,823

Total current liabilities

189,649

176,157

Operating lease liabilities

150,162

173,392

Other liabilities

26,623

20,063

Total liabilities

366,434

369,612

Commitments and contingencies

Stockholders’ equity:

Class A common stock, $0.00001 par value, 6,666,667 shares authorized, 507,248 and 360,850 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively; Class B common stock, $0.00001 par value, 1,333,333 shares authorized, 107,995 and 209,054 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively

6

6

Additional paid-in capital

4,475,425

4,229,778

Accumulated other comprehensive income

2,063

647

Accumulated deficit

(2,542,890

)

(2,206,726

)

Total stockholders’ equity

1,934,604

2,023,705

Total liabilities and stockholders’ equity

$

2,301,038

$

2,393,317

PINTEREST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended September 30,

2020

2019

Revenue

$

442,616

$

279,703

Costs and expenses:

Cost of revenue

112,844

83,520

Research and development

160,187

167,703

Sales and marketing

118,531

110,740

General and administrative

148,087

51,450

Total costs and expenses

539,649

413,413

Loss from operations

(97,033

)

(133,710

)

Interest income

2,896

9,837

Interest expense and other income (expense), net

(51

)

(1,056

)

Loss before provision for (benefit from) income taxes

(94,188

)

(124,929

)

Provision for (benefit from) income taxes

32

(197

)

Net loss

$

(94,220

)

$

(124,732

)

Net loss per share attributable to common stockholders, basic and diluted

$

(0.16

)

$

(0.23

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

603,490

546,126

PINTEREST, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Nine Months Ended September 30,

2020

2019

Operating activities
Net loss $

(336,164

)

$

(1,325,653

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization

29,174

19,496

Share-based compensation

234,801

1,265,581

Other

7,268

(3,296

)

Changes in assets and liabilities:
Accounts receivable

(25,667

)

12,331

Prepaid expenses and other assets

(6,184

)

(1,502

)

Operating lease right-of-use assets

31,835

21,746

Accounts payable

7,689

8,897

Accrued expenses and other liabilities

20,391

13,133

Operating lease liabilities

(35,013

)

(19,634

)

Net cash used in operating activities

(71,870

)

(8,901

)

Investing activities
Purchases of property and equipment and intangible assets

(14,032

)

(20,433

)

Purchases of marketable securities

(808,180

)

(527,899

)

Sales of marketable securities

174,042

93,389

Maturities of marketable securities

699,133

252,164

Other investing activities

316

Net cash provided by (used in) investing activities

51,279

(202,779

)

Financing activities
Proceeds from initial public offering, net of underwriters’ discounts and commissions

1,573,200

Proceeds from exercise of stock options, net

64,992

744

Shares repurchased for tax withholdings on release of restricted stock units

(56,894

)

(424,965

)

Payment of deferred offering costs and other financing activities

(1,750

)

(11,305

)

Net cash provided by financing activities

6,348

1,137,674

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(86

)

(182

)

Net increase (decrease) in cash, cash equivalents, and restricted cash

(14,329

)

925,812

Cash, cash equivalents, and restricted cash, beginning of period

677,743

135,290

Cash, cash equivalents, and restricted cash, end of period $

663,414

$

1,061,102

Supplemental cash flow information
Accrued property and equipment $

3,952

$

7,174

Operating lease right-of-use assets obtained in exchange for operating lease liabilities $

14,030

$

41,399

Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets
Cash and cash equivalents $

652,723

$

1,033,871

Restricted cash included in prepaid expenses and other current assets

1,470

2,409

Restricted cash

9,221

24,822

Total cash, cash equivalents, and restricted cash $

663,414

$

1,061,102

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended September 30,

2020

2019

Share-based compensation by function:

Cost of revenue

$

2,298

$

1,568

Research and development

61,357

83,539

Sales and marketing

11,958

21,243

General and administrative

16,019

23,938

Total share-based compensation

$

91,632

$

130,288

Amortization of acquired intangible assets by function:

Cost of revenue

$

94

$

94

General and administrative

158

310

Total amortization of acquired intangible assets

$

252

$

404

Reconciliation of total costs and expenses to non-GAAP costs and expenses:

Total costs and expenses

$

539,649

$

413,413

Share-based compensation

(91,632

)

(130,288

)

Amortization of acquired intangible assets

(252

)

(404

)

Termination of future lease contract

(89,500

)

Total Non-GAAP costs and expenses

$

358,265

$

282,721

Reconciliation of net loss to non-GAAP net income:

Net loss

$

(94,220

)

$

(124,732

)

Share-based compensation

91,632

130,288

Amortization of acquired intangible assets

252

404

Termination of future lease contract

89,500

Non-GAAP net income

$

87,164

$

5,960

Weighted-average shares outstanding for net loss per share, basic and diluted

603,491

546,126

Weighted-average dilutive securities(1)

72,803

104,594

Diluted weighted-average shares outstanding for Non-GAAP net income per share

676,294

650,720

Net loss per share

$

(0.16

)

$

(0.23

)

Non-GAAP net income per share

$

0.13

$

0.01

___________

(1)

Gives effect to potential common stock instruments such as stock options, unvested restricted stock units and unvested restricted stock awards.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS

(in thousands, except per share amounts)

(unaudited)

Three Months Ended September 30,

2020

2019

Reconciliation of net loss to Adjusted EBITDA:

Net Loss

$

(94,220

)

$

(124,732

)

Depreciation and amortization

8,943

7,293

Share-based compensation

91,632

130,288

Interest income

(2,896

)

(9,837

)

Interest expense and other (income) expense, net

51

1,056

Provision for (benefit from) income taxes

32

(197

)

Termination of future lease contract

89,500

Adjusted EBITDA

$

93,042

$

3,871

Investor relations:
Doug Clark
ir@pinterest.com

Microsoft Cloud Strength Fuels First Quarter Results

REDMOND, Wash. — October 27, 2020 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2020, as compared to the corresponding period of last fiscal year:

  • Revenue was $37.2 billion and increased 12%
  • Operating income was $15.9 billion and increased 25%
  • Net income was $13.9 billion and increased 30%
  • Diluted earnings per share was $1.82 and increased 32%

“The next decade of economic performance for every business will be defined by the speed of their digital transformation,” said Satya Nadella, chief executive officer of Microsoft. “We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs.”

 

“Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue generating $15.2 billion, up 31% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to invest against the significant opportunity ahead of us to drive long-term growth.”

Business Highlights

Revenue in Productivity and Business Processes was $12.3 billion and increased 11%, with the following business highlights:

  • Office Commercial products and cloud services revenue increased 9% driven by Office 365 Commercial revenue growth of 21% (up 20% in constant currency)
  • Office Consumer products and cloud services revenue increased 13% and Microsoft 365 Consumer subscribers increased to 45.3 million
  • LinkedIn revenue increased 16%
  • Dynamics products and cloud services revenue increased 19% (up 18% in constant currency) driven by Dynamics 365 revenue growth of 38% (up 37% in constant currency)

Revenue in Intelligent Cloud was $13.0 billion and increased 20% (up 19% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 22% (up 21% in constant currency) driven by Azure revenue growth of 48% (up 47% in constant currency)

Revenue in More Personal Computing was $11.8 billion and increased 6%, with the following business highlights:

  • Windows OEM revenue declined 5%
  • Windows Commercial products and cloud services revenue increased 13% (up 12% in constant currency)
  • Xbox content and services revenue increased 30%
  • Surface revenue increased 37% (up 36%in constant currency)
  • Search advertising revenue excluding traffic acquisition costs decreased 10% (down 11% in constant currency)

Microsoft returned $9.5 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2021, an increase of 21% compared to the first quarter of fiscal year 2020.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements 

Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

Responding to COVID-19

At Microsoft, our focus remains on ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers and partners to help them do their best work while remote. Additional information about Microsoft’s COVID-19 response can be found here.

Environmental, Social, and Governance (ESG)

To better execute on Microsoft’s mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.

Webcast Details

Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, deputy general counsel, and Michael Spencer, general manager of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on October 27, 2021.

 

 

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

  Three Months Ended September 30,
 ($ in millions, except per share amounts) Revenue Operating Income Net Income Diluted Earnings per Share
2019 As Reported $33,055 $12,686 $10,678 $1.38
2020 As Reported $37,154 $15,876 $13,893 $1.82
Percentage Change Y/Y 12% 25% 30% 32%
Constant Currency Impact $108 $71 $231 $0.03
Percentage Change Y/Y Constant Currency 12% 25% 28% 30%

Segment Revenue Constant Currency Reconciliation

  Three Months Ended September 30,
 ($ in millions) Productivity and Business Processes Intelligent Cloud More Personal Computing
2019 As Reported $11,077 $10,845 $11,133
2020 As Reported $12,319 $12,986 $11,849
Percentage Change Y/Y 11% 20% 6%
Constant Currency Impact $32 $42 $34
Percentage Change Y/Y Constant Currency 11% 19% 6%

Selected Product and Service Revenue Constant Currency Reconciliation           

  Three Months Ended September 30, 2020
Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Change Y/Y Constant Currency
Office Commercial products and cloud services 9% 0% 9%
Office 365 Commercial 21% (1)% 20%
Office Consumer products and cloud services 13% 0% 13%
LinkedIn 16% 0% 16%
Dynamics products and cloud services 19% (1)% 18%
Dynamics 365 38% (1)% 37%
Server products and cloud services 22% (1)% 21%
Azure 48% (1)% 47%
Windows OEM (5)% 0% (5)%
Windows Commercial products and cloud services 13% (1)% 12%
Xbox content and services 30% 0% 30%
Surface 37% (1)% 36%
Search advertising excluding traffic acquisition costs (10)% (1)% (11)%

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.

 

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

  • intense competition in all of our markets that may lead to lower revenue or operating margins;
  • increasing focus on cloud-based services presenting execution and competitive risks;
  • significant investments in products and services that may not achieve expected returns;
  • acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;
  • impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;
  • cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;
  • disclosure and misuse of personal data that could cause liability and harm to our reputation;
  • the possibility that we may not be able to protect information stored in our products and services from use by others;
  • abuse of our advertising or social platforms that may harm our reputation or user engagement;
  • the development of the internet of things presenting security, privacy, and execution risks;
  • issues about the use of artificial intelligence in our offerings that may result in competitive harm, legal liability, or reputational harm;
  • excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;
  • quality or supply problems;
  • the possibility that we may fail to protect our source code;
  • legal changes, our evolving business model, piracy, and other factors may decrease the value of our intellectual property;
  • claims that Microsoft has infringed the intellectual property rights of others;
  • claims against us that may result in adverse outcomes in legal disputes;
  • government litigation and regulatory activity relating to competition rules that may limit how we design and market our products;
  • potential liability under trade protection, anti-corruption, and other laws resulting from our global operations;
  • laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;
  • additional tax liabilities;
  • damage to our reputation or our brands that may harm our business and operating results;
  • exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;
  • uncertainties relating to our business with government customers;
  • adverse economic or market conditions that may harm our business;
  • catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business; and
  • the dependence of our business on our ability to attract and retain talented employees.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of September 30, 2020. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777,rrt@we-worldwide.com

For more information, financial analysts and investors only:

Michael Spencer, General Manager, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.



MICROSOFT CORPORATION

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

Three Months Ended

September 30,

  2020   2019
Revenue:
   Product  $15,803  $15,768
   Service and other 21,351 17,287
      Total revenue 37,154 33,055
Cost of revenue:
   Product 3,597 3,305
   Service and other 7,405 7,101
      Total cost of revenue 11,002 10,406
      Gross margin 26,152 22,649
Research and development 4,926 4,565
Sales and marketing 4,231 4,337
General and administrative 1,119 1,061
Operating income 15,876 12,686
Other income, net 248 0
Income before income taxes 16,124 12,686
Provision for income taxes 2,231 2,008
Net income  $13,893  $10,678
Earnings per share:
   Basic  $1.84  $1.40
   Diluted  $1.82  $1.38
Weighted average shares outstanding:
   Basic 7,566 7,634
   Diluted 7,637   7,710

 

 

COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

Three Months Ended

September 30,

  2020   2019
Net income  $13,893  $10,678
Other comprehensive income (loss), net of tax:
  Net change related to derivatives 4 (2)
  Net change related to investments (201) 577
  Translation adjustments and other 111 (296)
    Other comprehensive income (loss) (86) 279
Comprehensive income  $13,807  $10,957

 

 

BALANCE SHEETS
(In millions) (Unaudited)
  September 30,

2020

  June 30,

2020

Assets
Current assets:
   Cash and cash equivalents  $17,205  $13,576
   Short-term investments 120,772 122,951
      Total cash, cash equivalents, and short-term investments 137,977 136,527
   Accounts receivable, net of allowance for doubtful
accounts of $610 and $788
22,851 32,011
   Inventories 2,705 1,895
   Other current assets 13,544 11,482
      Total current assets 177,077 181,915
Property and equipment, net of accumulated
depreciation of $45,417 and $43,197
47,927 44,151
Operating lease right-of-use assets 9,047 8,753
Equity investments 3,103 2,965
Goodwill 43,890 43,351
Intangible assets, net 6,923 7,038
Other long-term assets 13,034 13,138
            Total assets  $301,001  $301,311
Liabilities and stockholders’ equity
Current liabilities:
   Accounts payable  $12,509  $12,530
   Current portion of long-term debt 6,497 3,749
   Accrued compensation 5,714 7,874
   Short-term income taxes 2,384 2,130
   Short-term unearned revenue 33,476 36,000
   Other current liabilities 9,476 10,027
      Total current liabilities 70,056 72,310
Long-term debt 57,055 59,578
Long-term income taxes 28,204 29,432
Long-term unearned revenue 2,829 3,180
Deferred income taxes 187 204
Operating lease liabilities 7,753 7,671
Other long-term liabilities 11,525 10,632
         Total liabilities 177,609 183,007
Commitments and contingencies
Stockholders’ equity:
   Common stock and paid-in capital – shares
authorized 24,000; outstanding 7,564 and 7,571
81,089 80,552
   Retained earnings 39,193 34,566
   Accumulated other comprehensive income 3,110 3,186
         Total stockholders’ equity 123,392 118,304
            Total liabilities and stockholders’ equity  $301,001  $301,311

 

CASH FLOWS STATEMENTS
(In millions) (Unaudited)
Three Months Ended

September 30,

  2020   2019
Operations
Net income  $13,893  $10,678
Adjustments to reconcile net income to net cash from operations:
  Depreciation, amortization, and other 2,645 2,971
  Stock-based compensation expense 1,456 1,262
  Net recognized losses (gains) on investments and derivatives (128) 11
  Deferred income taxes (11) (177)
  Changes in operating assets and liabilities:
    Accounts receivable 8,843 10,090
    Inventories (808) (561)
    Other current assets (54) (438)
    Other long-term assets (62) (333)
    Accounts payable 315 (547)
    Unearned revenue (3,064) (2,892)
    Income taxes (983) (3,336)
    Other current liabilities (2,951) (3,320)
    Other long-term liabilities 244 410
        Net cash from operations 19,335 13,818
Financing
Repayments of debt 0 (2,500)
Common stock issued 545 427
Common stock repurchased (6,743) (4,912)
Common stock cash dividends paid (3,856) (3,510)
Other, net (235) 286
        Net cash used in financing (10,289) (10,209)
Investing
Additions to property and equipment (4,907) (3,385)
Acquisition of companies, net of cash acquired,
and purchases of intangible and other assets
(481) (462)
Purchases of investments (14,580) (23,390)
Maturities of investments 14,266 19,082
Sales of investments 2,414 6,379
Other, net (2,083) 0
        Net cash used in investing (5,371) (1,776)
Effect of foreign exchange rates on cash and cash equivalents (46) (72)
Net change in cash and cash equivalents 3,629 1,761
Cash and cash equivalents, beginning of period 13,576 11,356
Cash and cash equivalents, end of period  $17,205  $13,117
SEGMENT REVENUE AND OPERATING INCOME
(In millions) (Unaudited)
       
  Three Months Ended

September 30,

 
  2020   2019
Revenue      
Productivity and Business Processes  $12,319    $11,077
Intelligent Cloud 12,986   10,845
More Personal Computing 11,849   11,133
  Total  $37,154    $33,055
Operating Income      
Productivity and Business Processes  $5,706    $4,782
Intelligent Cloud 5,422   3,889
More Personal Computing 4,748   4,015
  Total  $15,876    $12,686

 

eBay Inc. To Report Classifieds Business as Discontinued Operations and Releases Updated Historical Financials

During the third quarter of 2020, eBay Inc. announced that it had entered into a definitive agreement to transfer its Classifieds business to Adevinta and determined that it met the criteria for the classification of held-for-sale accounting and discontinued operations.

SAN JOSE, Calif., Oct. 1, 2020 — During the third quarter of 2020, eBay Inc. (Nasdaq: EBAY) announced that it had entered into a definitive agreement to transfer its Classifieds business to Adevinta and determined that it met the criteria for the classification of held-for-sale accounting and discontinued operations. Accordingly, Classifieds’ financial results will be reflected in eBay’s condensed consolidated financial statements as discontinued operations beginning in the third quarter of 2020. Please refer to the 8-K filed today for a restatement of historical financial results.

Cautions Regarding Forward Looking Statements

Certain statements herein are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. Such forward-looking statements are often identified by words such as “anticipate,” “approximate,” “believe,” “commit,” “continue,” “could,” “estimate,” “expect,” “hope,” “intend,” “may,” “outlook,” “plan,” “project,” “potential,” “should,” “would,” “will” and other similar words or expressions. Such forward-looking statements reflect eBay’s current expectations or beliefs concerning future events and actual events may differ materially from historical results or current expectations. The reader is cautioned not to place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties, risks, assumptions and other factors, many of which are outside the control of eBay. The forward-looking statements in this document address a variety of subjects including, for example, the closing of the transaction pursuant to which eBay will transfer certain subsidiaries which operate its Classifieds business (the “Transaction”) and the potential benefits of the Transaction. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the possibility that regulatory and other approvals and conditions to the Transaction are not received or satisfied on a timely basis or at all; the possibility that eBay may not fully realize the projected benefits of the Transaction; changes in the anticipated timing for closing the Transaction; business disruption during the pendency of or following the Transaction; diversion of management time on Transaction-related issues; the reaction of customers and other persons to the Transaction; and other events that could adversely impact the completion of the Transaction, including the ongoing COVID-19 pandemic and other industry or economic conditions outside of our control. In addition, actual results are subject to other risks and uncertainties that relate more broadly to eBay’s overall business, including those more fully described in eBay’s filings with the Securities and Exchange Commission (“SEC”), including its annual report on Form 10-K for the fiscal year ended December 31, 2019 and subsequent quarterly reports on Form 10-Q. The forward-looking statements in this document speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

UN lists brand equity in Global Innovation Index for the first time

Using data from Brand Finance, the indicator now recognizes the contribution of brands as intangible assets to innovation in an economy.

  • The 2020 update of the Global Innovation Index (IIG) includes a brand equity metric for the first time in the study’s 13-year history.
  • The Brand Finance database that has the ISO certification with history of more than 5,000 most important brands in the world that it values ​​annually has been used to create the new measure.
  • Collaboration between UN WIPO and Brand Finance demonstrates international recognition of the importance of brands for value creation.
  • Hong Kong SAR has become the world’s leading economy in the new brand value metric, as well as the leading region in the entire country, with the highest global brand value scaled by GDP (in PPP $ ).
  • With a score of 33.29 out of 100 in the IIG’s global brand value indicator, Spain is among the countries whose brand value / GDP ratio is lower than expected for the size of the economy.

UN lists brand equity in Global Innovation Index for the first time

Access the IIG 2020 report here

Madrid, September 3, 2020.- For the first time in its 13-year history, the renowned Global Innovation Index (IIG) includes the value of the brand as one of its main indicators. The study uses findings from the ISO-certified database of the world’s 5,000 top brands analyzed annually by Brand Finance , the leading independent intangibles valuation consultancy whose rankings comply with ISO 10668 and ISO 20671 for brand valuation and evaluation. respectively.

Published by the World Intellectual Property Organization (WIPO), a specialized agency of the United Nations (UN), the IIG provides detailed metrics on the innovation performance of 131 countries and economies around the world. Its 80 indicators explore a broad view of innovation, including the political environment, knowledge and technology, infrastructure, business sophistication, and now brand equity as well.

The results of Brand Finance’s public study of the 5,000 most valuable and strongest brands in the world have been used to create a new GII indicator in 2020. The values ​​of the top brands in each economy are added and scaled by gross domestic product (GDP ). The indicator includes the contribution of brands as intangible assets to innovation in an economy. It is carried out between the metrics that collect the creative results of an economy and adds a new dimension to the evaluation of the world’s most innovative economies included in the IIG.

The Hong Kong Special Administrative Region (SAR) has become the world’s leading economy in the new brand equity metric, as well as the leading region across the country, with the highest global brand equity scaled by the GDP (in PPP $). Relative to the size of its economy, Hong Kong SAR is the most successful region in developing valuable brands, and this is a clear indicator of what is likely to happen in mainland China, which is currently ranked 17th in the same. metrics.

Experts predict that China’s GDP will exceed that of the United States by 2030. Teresa de Lemus, Managing Director of Brand Finance Spain, commented: “A nation’s brands are crucial drivers of both economic growth and economic development. Taking China as an example, we are witnessing the nation make significant progress in developing local brands, such as TikTok and Huawei , and the number of leading brands will undoubtedly continue to grow. If this accelerates, we at Brand Finance have predicted that China is likely to overtake the United States as the world’s leading economy by brand value by 2025. ”

Spain in the UN Global Innovation Index

Spain is among the economies in which the brand value / GDP ratio is lower than expected for the size of the economy. Like Spain, the large and fast-growing BRIC nations fall below the line (Graph 1 in Notes to the Editor), suggesting that their range in global brand value relative to the size of their economies leaves a significant potential for the growth of local brands. Economies that are above the trend line are the most successful in developing brands in proportion to their size.

Countries such as Central China, Italy, Australia, India, Mexico, Thailand, Russia, Belgium, Brazil or Indonesia are in a similar situation to Spain in the IIG. China and India especially, have been encouraging brand development in their homeland, in recent years, a trend that has been increased by COVID-19. As demand for these brands increases, nations will need to ensure that they are equipped to facilitate effective and efficient innovation to ultimately support the development of successful global brands.

In 2019, before including the brand value, Spain ranked 29th in the global ranking with a score of 47.85 out of 100. In 2020 Spain has decreased 2.25 points compared to the previous year to 45.60 / 100 and 30th but remains in the range of countries that are in line with expectations for level of development. This first year that the ranking includes brand equity, Spain scores 92.7 (33.29 / 100), ranking 21st for said intangible asset.

Teresa de Lemus, Managing Director of Brand Finance Spain: “With the inclusion of brand equity in the Global Innovation Index, the world’s economies have another important indicator of comparison of their intangible assets. Spain, in position 21 in the brand value ranking, already has another benchmark to be measured with the rest of the economies in addition to the Soft Power ranking where, in position 16 with a score of 47.6 / 100, our country stood out for being the nation with the funniest and friendliest inhabitants in the world. Two key references to improve not only our country brand but our global positioning ”.

See page 324 of the report.

A leading benchmark for measuring the innovation performance of an economy

The IIG ranking has become the global benchmark for government and business leaders, facilitating public-private dialogue and helping professionals and experts to credibly assess the annual progress of innovation around the world. The inclusion of brand equity among the IIG indicators demonstrates international recognition of the importance of brands for value creation, especially in supporting economic recovery, and the growing consensus on the need for a reliable and independent intangible valuation of assets.

Teresa de Lemus, Managing Director of Brand Finance Spain: “After 25 years of pioneering the discipline of brand valuation, Brand Finance is proud to partner with WIPO to create this important new measure of innovation. Brands create value and will help lift the global economy out of the recession caused by COVID-19. There has never been a more important time to recognize the role of brands. “

Sacha Wunsch-Vincent, co  editor and head of IIG, Department of Economics and Data Analysis, noted: “Innovation and branding go hand in hand; Brands are, in fact, a key way for companies to get returns on their R&D investments. We are pleased that IIG 2020 now includes branding, this important dimension of intangible assets. ”

After the launch of the IIG, David Haigh, CEO of Brand Finance will participate in the next 45th World Congress of the International Advertising Association (AIP) to discuss the new report “Why Brands Matter” by Brand Finance as a launch of the campaign of the AIP demonstrating the role of brands as an engine of post-COVID-19 recovery.

Analysis of the new brand equity metric

The Hong Kong Special Administrative Region (SAR) has become the world’s leading economy in the new brand equity metric, as well as the leading region across the country, with the highest global brand equity scaled by the GDP (in PPP $). Relative to the size of its economy, Hong Kong SAR is the most successful in developing valuable brands, and this is a clear indicator of what is likely to happen in mainland China, which currently ranks 17th on the same metric. .

With world-renowned sweets, watchmakers and financial services, Swiss brands have become world leaders in quality and excellence. The Swiss giant Nestlé , for example, has produced several brands that are now household names. Switzerland has one of the best global regimes for the protection of intellectual property, a key factor in promoting innovation and building successful brands. Furthermore, the strong controls on the use of the ‘Swiss made’ brand have also allowed qualified Swiss brands to differentiate themselves and leverage their nation’s reputation effectively.

Several successful small economies such as Sweden, the Netherlands and Malaysia emerge among the top spots for the economies that produce the most valuable brands.

Brand Finance analysis in Figure 1. illustrates how economies stack up in terms of their rank based solely on brand equity, compared to brand equity relative to GDP.

Economies that are above the trend line are the most successful in developing brands in proportion to their size. The economies that fall below the trend line, including Spain, are those in which the brand value / GDP ratio is lower than expected for the size of the economy. For example, large, fast-growing BRIC nations fall below the line, suggesting that their range in global brand value relative to the size of their economies leaves significant potential for local brand growth.. China and India especially, have been encouraging brand development in their homeland, in recent years, a trend more advanced by COVID-19. As demand for these brands increases, nations will need to ensure that they are equipped to facilitate effective and efficient innovation to ultimately support the development of successful global brands.

Complete Ranking – Global Brand Value

Ranking Economy Punctuation
1 Hong Kong SAR        100.0
2 Switzerland          84.2
3 Sweden          76.8
4 United States of America          73.0
5 France          63.9
6 UK          60.0
7 Malaysia          57.0
8 Republic of Korea          56.3
9 Netherlands          55.1
10 Japan          52.5
eleven Germany        51.48
12 Canada        47.81
13 Singapore        47.51
14 Denmark        47.07
fifteen Luxembourg        46.64
16 United Arab Emirates        46.27
17 Mainland China        42.47
18 Saudi Arabia        40.15
19 Viet nam        36.20
twenty Jamaica        34.11
twenty-one Spain        33.29
22 South Africa        31.42
2. 3 Italy        31.33
24 Taste        29.49
25 Finland        29.37
26 Australia        28.64
27 Ireland        25.12
28 Norway        23.41
29 Thailand        22.94
30 Mexico        22.20
31 India        22.09
32 Belgium        21.15
33 Philippines        20.92
3. 4 Austria        18.35
35 Russian Federation        17.80
36 Kuwait        17.64
37 Chile        15.66
38 Portugal        15.63
39 Poland        13.79
40 Colombia        13.59
41 Czech Republic        12.95
42 Indonesia        12.87
43 Brazil        12.13
44 Turkey        10.90
Four. Five Togo        10.16
46 Israel          7.60
47 Romania          7.22
48 New Zealand          6.75
49 Morocco          6.27
fifty Senegal          5.67
51 Burma          5.49
52 Panama          4.86
53 Bahrain          4.79
54 Kenya          4.69
55 Sri Lanka          4.60
56 Zimbabwe          4.38
57 Argentina          4.19
58 Lao People’s Democratic Republic          3.82
59 Hungary          3.78
60 Oman          3.47
61 Lebanon          3.44
62 Georgia          3.26
63 Jordan          2.79
64 Peru          2.46
65 Slovenia          2.31
66 Nigeria          2.27
67 Cyprus          2.24
68 Ivory Coast          1.99
69 Pakistan          1.59
70 Ethiopia          1.50
71 Egypt          1.50
72 Kazagistan          1.28
73 Greece          1.19
74 Slovakia          1.14
75 Costa Rica          0.95
76 Bangladesh          0.89
77 Dominican Republic          0.84
78 Iran          0.69
79 Ukraine          0.46
80 Estonia              –  
80 Latvia              –  
80 Lithuania              –  
80 Serbia              –  
80 North macedonia              –  
80 Mongolia              –  
80 Moldova              –  
80 Armenia              –  
80 Belorussia              –  
80 Uruguay              –  
80 Bosnia and Herzegovina              –  
80 Albania              –  
80 Botswana              –  
80 Rwanda              –  
80 Kyrgyzstan              –  
80 Nepal              –  
80 Paraguay              –  
80 Trinidad and Tobago              –  
80 Ecuador              –  
80 Honduras              –  
80 Namibia              –  
80 Bolivia              –  
80 Tajikistan              –  
80 Cambodia              –  
80 Uganda              –  
80 Burkina faso              –  
80 Cameroon              –  
80 Algeria              –  
80 Zambia              –  
80 Mali              –  
80 Mozambique              –  
80 Benin              –  
80 Yemen              –  

 

About Brand Finance

Brand Finance is the leading independent, international consulting firm in brand valuation and strategy, with offices in 20 countries. We create bridges between the areas of marketing and finance. We provide clarity to marketers, brand owners and investors, when quantifying the financial value of a brand. For our experience in strategy; branding; market research; Visual identity; finance; tax aspects and intellectual property, at Brand Finance we support the client to make the right decisions that optimize the value of a brand and of the entire company by building bridges between marketing and finance.

Every year, the independent brand valuation consultancy Brand Finance values ​​the most important brands in the world.

The brand value equivalent to the net economic benefit the owner of a brand get from llegarla to license on the open market. On the other hand, brand strength refers to how the brand performs on intangible measures compared to its competition. More details on the methodology and terminology, as well as the definitions of terms can be found on our Brand Finance website .

Brand Finance collaborated in the development of the international standard on financial valuation of brands, ISO 10668, as well as in the recently approved standard on brand assessment, ISO 20671. Brand Finance is under the ICAEW regulations as a public accounting firm and is the first consulting firm in brand valuation to be part of the international committee on valuation standards, IVSC.

The Brand Finance methodology used in the preparation of the annual rankings of the most valuable and strongest brands in the world, is certified by the North American Council, Marketing Accountability Standards Board (MASB) and complies with the Marketing Metric Audit Protocol ( MMAP) of the organization.

The Benefits of Fintech technology for your company

MORE AND MORE COMPANIES OFFER INNOVATIVE AND ATTRACTIVE SERVICES BASED ON NEW TECHNOLOGIES FOR THE FINANCIAL SECTOR, THE SO-CALLED FINTECH . THIS GROWTH IS DUE TO THE BENEFITS IT ENTAILS FOR COMPANIES THAT DECIDE TO HIRE THESE SERVICES. ITS USE HAS MANY ADVANTAGES OVER TRADITIONAL FINANCIAL SERVICES, REGARDLESS OF THE TYPE OF COMPANY THAT USES THEM.

THE BENEFITS OF “FINTECH” TECHNOLOGY FOR YOUR COMPANY

1.  What is Fintech

The  term Fintech  is a neologism that comes from the contraction of the English words  finance  and  technology . Initially, it refers to technology startups that take advantage of the most modern technologies to create innovative digital financial services. By extension, the term Fintech is also applied to describe these financial services.

The  Fintech  is a revolution of the customer experience, in some cases creating entirely new services and other improving or disrupcionando existing ones. Fintech services are aimed at end customers, whether they are individuals, professionals or companies, without intermediaries.

2. Advantages of Fintech

Depending on the type of financial technological product that is used in a company, the benefits can be one or the other. But, in general, we can define several advantages that are often repeated in all fields related to fintech:

  • Savings:  faster and more automated procedures improve business efficiency. An efficiency that translates, specifically in the case of finance, into financial savings. But we must also not lose sight of saving time in an era where gold is more than ever.
  • Flexibility:  a concept 100% applicable to Fintech. This type of technology builds new, more agile workflows. Therefore, they allow you to save data, carry out operations through alternative financing and much more; where and when you want.
  • Transparency:  through this technology applied to finance, the company can manage in a transparent and fast way. In this way, Fintech becomes synonymous with business transparency.
  • Efficiency:  financial technology is and makes us more efficient. Automation is  a great specialization since it offers very specific services . Thus, its high degree has an impact on a high level of efficiency and quality of services, as well as a quick and agile response. According to a study that we see collected in the “ I  Captio & ASSET Fintech Report  : Spanish companies as users of  fintech ”, of the reasons why companies in our country invest in fintech solutions  They emphasize efficiency and better time management. Thus, for finance professionals, the main advantage of using technology over finance is, for 54.6%, to  achieve more efficient processes or management for their company . Saving time (50.9%) and immediacy (41.7%) are some of the most common reasons.
  • Analysis:  the use of this type of technology improves the analysis of processes, with more detailed information and data. In general, then, significant competitive advantages can be achieved over competitors who do not use this type of services or platforms.
  • Better internationality:   Often, the rigidity of the traditional financial sector makes it difficult or slower to manage between different countries. The business world in general, and Spanish in particular, is much more global than some of these traditional companies are prepared to manage. Emerging companies related to  financial technology , despite being relatively small and young companies tend to be more prepared in this regard. They understand well the needs related to the internationalization of companies and offer more flexibility and better related solutions.

The fintech sector   ( finance  +  technology )  is booming. More and more companies around the world are choosing to use these products and services.

Do Spanish companies know the term  fintech ? Are you adapting to this new paradigm of finance? What advantages does it bring them?

In this free report we reveal the current panorama of Spanish companies as fintech applicants and users  .

This report has been produced with the collaboration of: 

3. Infographic: Past vs Future of Business Finance

The financial sector is experiencing a true paradigm shift with the appearance of new solutions based on technological advances.

4. Regulation

In order to boost the sector, the European Parliament approved the DSP2 payment directive in 2015, the effects of which are already noticeable in Spain and thanks to which it is possible to pay for tickets to concerts and events on the mobile bill.

In addition to European legislation, the Spanish one is also moving towards a new regulation of the fintech sector  , although at a forced march. In May 2017, the public consultation period for the future payment services law ended and for which companies are asking for much greater flexibility, similar to that of the Anglo-Saxon countries. In fact, the system preferred by the experts is the British one, which has developed  a test system or  sandbox  in which  companies can test their innovative business models without being subject to the usual control measures  .

However, the  sandbox  would not be completely deregulated, since it is necessary to establish certain levels of security and solvency criteria that avoid fraud and generate distrust in the sector. For these reasons, the new law should set standards for the selection of  startups  capable of operating in the  sandbox , in addition to the time period in which fintech companies   can enjoy this special area, as well as the obligations to which they would be subject. .

 ,