Today, 11:05 AM
- Xoom (XOOM +1.9%) appears to be getting a lift from a Bloomberg report stating Western Union is in talks to buy long-time money transfer rival MoneyGram.
- Western and (especially) MoneyGram have soared on the report. Should a deal be inked, Western/MoneyGram will likely cite the existence of online/mobile rivals such as Xoom as a reason why antitrust regulators should clear it.
- Last week: Xoom soars following Q1 beat, in-line 2015 guidance
Wed, Apr. 29, 10:54 AM
- With shares having gone into earnings far below their 2013 highs following a string of earnings disappointments, XOOM's in-line 2015 guidance is going over well: The online money transfer platform expects revenue of $191M-$196M and EPS of $0.34-$0.43 vs. a consensus of $194.1M and $0.37. Q2 guidance is softer: Revenue of $46M-$48M and EPS of $0.05-$0.10 vs. a consensus of $49M and $0.10.
- Gross sending volume rose 6% Y/Y in Q1 to $1.7B, a slowdown from Q4's 29% growth. Transactions rose 23% to 3.55M (implies lower average transaction size), active customers 19% to 1.34M, and gross customer adds 14% to 156K. Xoom is no longer sharing new customer adds, arguing gross adds are more important.
- GAAP operating expenses rose 29% Y/Y to $33.2M, exceeding revenue growth of 24%. Xoom ended Q1 with $240.5M in cash/short-term investments (equal to nearly 1/3 of its current market cap), and no debt. The company is counting on its recent expansion into China and Pakistan to boost future growth, as well as newer services such as Bill Pay and Top Up (enabled by last year's BlueKite acquisition).
- Short-covering could have much to do with today's gains: 5.1M shares (over 1/5 of the float) shorted as of April 15.
- Q1 results, PR
Thu, Apr. 9, 3:18 PM
- Only a handful of non-microcap tech companies are posting outsized gains or losses today amid a 0.4% rise for the Nasdaq.
- Notable gainers include 4G modem/M2M module vendor Sierra Wireless (SWIR +5.1%), online money transfer provider Xoom (XOOM +4.6%), authentication hardware/software provider Vasco (VDSI +4.8%), and RFID/electronic document tech provider SuperCom (SPCB +7.9%).
- Notable decliners include a couple of Chinese tech firms that soared yesterday: Sungy Mobile (GOMO -5.4%), and China Mobile Games (CMGE -7.4%). Cheetah Mobile (CMCM -9.8%), a Chinese name that rose moderately yesterday but soared on Tuesday, is also a casualty.
- Sierra has risen to its highest levels since early March, and close to where it traded before tumbling in February due to the mixed guidance provided with a Q4 beat.
- SuperCom is now up 11% since posting Q4 results on March 26; the company missed estimates, but also stated it's open to a buyback and that it has major deals in the pipeline that aren't factored into current 2015 guidance.
- Previously covered: SolarCity/Vivint, Silicon Motion, Solar3D, Smith Micro, Turtle Beach, Taser, Highpower, Paylocity/Fleetmatics/Five9
- Update: Possibly helping Sierra: Today is 2015's IoT Day.
Wed, Mar. 18, 3:05 PM
- Today's notable tech gainers include data protection software vendor Imperva (IMPV +3.5%), supercomputer maker SGI (SGI +5.3%), analog/mixed-signal chipmaker MagnaChip (MX +6.1%), enterprise cloud healthcare software vendor Castlight (CSLT +7.6%), program guide/content protection IP provider Rovi (ROVI +5.8%), cloud contact center software vendor Zendesk (ZEN +5%), and Web site owner Demand Media (DMD +4.6%). The Nasdaq is up 0.8% following Janet Yellen's market-pleasing remarks.
- Notable decliners include Chinese EV maker Kandi (KNDI -3.4%), RF backhaul hardware maker DragonWave (DRWI -7.6%), NAND flash controller/4G RF transceiver maker Silicon Motion (SIMO -3.2%), and online money transfer provider Xoom (XOOM -4.9%).
- Castlight is now up 13% from Friday's close. Rovi, rumored to be weighing strategic options, is two days removed from naming a new sales chief and announcing a licensing deal with Sharp. Kandi has now given back the big Monday gains it saw after posting Q4 results.
- Xoom's losses are likely tied to Facebook's launch of a money transfer service for Messenger users; Facebook isn't charging any fees for now.
- Previously covered: Adobe, Wix, Microsemi/Vitesse, Pandora, 500.com, chip equipment makers, Qihoo, MicroVision, Solar3D, Immersion, Netlist, Qunar, eBay, Avid
Wed, Feb. 18, 2:59 PM
- Today's notable tech gainers include smart grid hardware/software provider Silver Spring (SSNI +8.9%), SMB Web services provider Web.com (WWWW +4.1%), cybersecurity software firm CyberArk (CYBR +7%), Chinese online retailers JD.com (JD +3.5%) and LightInTheBox (LITB +4.5%), cloud life sciences software firm Veeva (VEEV +4.3%), online money transfer provider Xoom (XOOM +3.7%), and video infrastructure hardware vendor Concurrent (CCUR +3.8%).
- Notable decliners include Russian online payments leader Qiwi (QIWI -6.5%), supercomputer maker SGI (SGI -3.7%), analog/mixed-signal chipmaker MagnaChip (MX -4.6%), and cloud marketing software provider Marketo (MKTO -3.3%). The Nasdaq is close to breakeven.
- JD.com and LightInTheBox are adding to the Tuesday gains they saw following Vipshop's big Q4 beat. MagnaChip is adding to the huge losses seen last Friday after its Q1-Q3 2014 results were finally posted. Marketo is adding to last week's post-earnings losses. CyberArk is now up 74% from its Feb. 9 close, thanks to a big Q4 beat and broader cybersecurity enthusiasm.
- Previously covered: Angie's List, GoPro, Zillow, Garmin, Qihoo, Sonus, VirnetX, Yandex, Bitauto, Cavium
Tue, Feb. 10, 7:09 PM
- Though it beat Q4 estimates, XOOM is guiding for Q1 revenue of $42M-$44M and EPS of -$0.02 to $0.03, below a consensus of $44.4M and $0.08. Full-year guidance is for revenue of $190M-$195M and EPS of $0.29-$0.40 vs. a consensus of $192.5M and $0.40.
- Gross sending volume rose 29% Y/Y in Q4 to $1.8B, an improvement from Q3's 13% growth. Transactions rose 27% to 3.48M, active customers 21% to 1.28M, and gross customer adds 10% to 145.2K.
- New customer adds rose 5% to 118.1K, reversing Q3's 22% decline. However, Xoom says it won't break out the figure going forward, arguing gross adds are a more important metric.
- Excluding a $30.8M fraud charge, GAAP operating expenses rose 43% Y/Y to $29.4M, outpacing revenue growth of 37%.
- Shares are down to $14.65 AH. Q4 results, PR.
Tue, Jan. 6, 9:07 AM
Mon, Jan. 5, 6:31 PM
- XOOM states it was "the victim of a criminal fraud" involving "employee impersonation and fraudulent requests targeting the Company's finance department, resulting in the transfer of $30.8 million in corporate cash to overseas accounts." (8-K)
- A $30.8M one-time charge will be recorded. The online money transfer service provider insists "no customer data was involved nor was any customer's money involved in this matter and the Company's systems were not impacted." Federal law enforcement authorities are "actively pursuing a multi-agency criminal investigation."
- CFO Matt Hibbard has resigned. Ryno Blignaut, who only recently stepped down as CFO, will serve as acting CFO and chief risk officer.
- The disclosures are overshadowing a Q4 guidance hike: Xoom now expects to report Q4 revenue of $43.1M-$43.6M, above prior guidance of $41M-$43M and a $41.8M consensus. Active customers +21% Y/Y in Q4 to 1.28M (+22% in Q3); new customers +5% to 118K (-22% in Q3).
Dec. 17, 2014, 9:45 AM
- Evercore ISI has upgraded XOOM to Hold, and hiked its target by $4 to $14.
- Evercore downgraded Xoom back on Oct. 6. Shares had fallen 37% since, thanks in large part to the company's soft Q4 guidance.
- The online money transfer firm now only goes for 1.8x 2015E exc. net cash. 2015's revenue growth consensus is at 21.4%.
Nov. 21, 2014, 4:35 PM
- Compass Point's Michael Tarkan has launched coverage on XOOM with a Sell rating and $11 target.
- Tarkan: "While we favor Xoom's operating model relative to the legacy money transfer agent model, increasing competition and ongoing concentration risk create uncertainty—and with shares trading at 42x our 2015 EPS estimate and 27x our 2016 estimate, versus peers at 10x-11x and 9x-10x, respectively, valuation appears rich."
- Shares fell 2% in regular trading, and aren't far removed from a post-IPO low of $14. They tumbled last month after Xoom provided light Q4 sales guidance and reported a drop in new customer adds.
Oct. 29, 2014, 12:45 PM
Oct. 28, 2014, 6:02 PM
- Though it only slightly missed Q3 revenue estimates (while beating on EPS), XOOM is guiding for Q4 revenue of $41M-$43M, below a $44M consensus. EPS guidance of $0.03-$0.06 is in-line with a $0.05 consensus.
- The online money transfer platform also announces CFO Ryno Blignaut is resigning, effective Dec. 1, to "pursue personal interests, spend more time with his family and to carefully evaluate the next step in his career." Finance VP Matt Hibbard will be Xoom's new CFO.
- Q3 gross sending volume +13% Y/Y to $1.7B; transactions +22% to 3.2M; active customers +22% to 1.2M; new customers -22% to 96.6K. Xoom admits "customer acquisition in the quarter was challenging."
- Q3 results, PR
Oct. 28, 2014, 5:48 PM
Oct. 6, 2014, 2:33 PM
Jul. 22, 2014, 7:38 PM
- Though XOOM beat Q2 estimates, it's guiding for Q3 EPS of -$0.01 to $0.02, below a $0.04 consensus. Q3 revenue guidance - $39M-$41M vs. a $40.2M consensus - is healthier.
- Full-year guidance is for revenue of $158M-$162M and EPS of $0.16-$0.24 vs. a consensus of $159.7M and $0.22.
- Gross sending volume +12% Y/Y in Q2 to $1.8B. Transactions +24% to 3.19M, active customers +30% to 1.2M, new customers -1% to 133.5K.
- Q2 results, PR
Jul. 22, 2014, 5:35 PM
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