It was a pretty big day for earnings as ride-hailing staple Lyft reported alongside Cisco Systems, and SmileDirectClub. So, how’d they do?
SmileDirectClub (SDC +4.13%): Smile, your earnings report was…mixed. SmileDirect fell 5% in extended trading after the recent IPO reported a loss of $95 million compared with a $32 million loss in the year-ago period. SmileDirect executives were pleased with sales after it beat Wall Street expectations in that category.
- “Our performance in the quarter, and more importantly since the quarter, reflects the strength of our teledentistry platform, along with the flexibility and agility of our business model.” David Katzman (Chief Executive Officer) said.
Lyft (LYFT -0.42%): Buckle up, this report was a bumpy ride. The ride-hailing company saw a dramatic revenue drop of 61% vs the same period last year. That’s not very good, but the decline can obviously be blamed on the lack of travel due to COVID-19. The President of Lyft, John Zimmer, also said that his company may need to suspend operations in California starting August 21st.
- There was some good news, however. Lyft said that rides in July were up 78% compared to April 2020. It looks like people are starting to travel again – that’s good news for a company that survives off that.
Cisco (CSCO +1.93%). Shares of Cisco Systems fell -6% after market close as its revenue continues to drop. It also provided a disappointing forecast.
The breakdown: The technology industry is seeing major growth, but Cisco is falling behind. More companies are moving online and relying on Cisco-like software to run their businesses.
- So, why is the company struggling? Big tech neglect. Amazon, Microsoft, and Google have invested heavily into “cloud” technology, so they’ve been neglecting Cisco software. The loss from big tech is not enough to make up for the boost from smaller companies.
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