Tag Archives: Raises
FILE PHOTO: The logo of Infosys is pictured inside the company’s headquarters in Bengaluru, India, April 13, 2017. REUTERS/Abhishek N. Chinnappa/File Photo
(Reuters) – Indian IT services company Infosys Ltd raised its full-year revenue growth forecast on Friday, but reported a larger-than-expected drop in third-quarter profit, due to higher expenses.
The country’s second-biggest software services exporter by market capitalization reported a 29.6 percent fall in attributable profit for October-December to 36.09 billion rupees ($ 511.94 million). That compared with the 41.31 billion rupees average of 25 analyst estimates compiled by Refinitiv Eikon.
A year earlier, it made a profit of 51.29 billion rupees, helped by tax benefits from the firm’s deal with the U.S. Internal Revenue Service, the company said in a statement here
Still, Infosys raised its revenue growth forecast for the year through March 2019 to 8.5-9 percent in constant currency, from 6-8 percent previously.
Total expenses in the quarter surged over 26 percent to 170.21 billion rupees, which included an additional depreciation and amortization charge of $ 12 million and a reduction of $ 65 million in the carrying value for its Skava units.
The company also said it was “no longer highly probable” that the sale of its units Kallidus & Skava and Panaya would be completed by March 31, 2019.
Meanwhile, revenue from operations in the quarter rose 20.3 percent to 214 billion rupees in what is usually considered a seasonally weak period for Indian IT firms.
Infosys also approved a buyback of shares worth 82.60 billion rupees as part of its capital allocation policy.
On Thursday, market leader Tata Consultancy Services Ltd reported a record quarterly profit for October-December.
Reporting by Arnab Paul and Krishna V Kurup in Bengaluru; Editing by Jason Neely and Mark Potter
JERUSALEM (Reuters) – Israeli high-tech firm Mantis Vision, which provides 3D content capture and sharing technologies, said on Monday it raised $ 55 million in a round led by China-based Luenmei Quantum Co and Samsung Catalyst Fund.
The Israeli firm and Luenmei also formed a joint venture to strengthen Mantis Vision’s growth in China.
Mantis Vision said its technology can be used in a variety of applications, including 3D smartphone cameras and professional 3D scanners.
The company said it has now raised a total of $ 83 million and expects to double its workforce by the end of 2020 with an additional 140 employees.
Reporting by Ari Rabinovitch; Editing by Tova Cohen
SHANGHAI (Reuters) – Chinese state-backed media group CMC Inc said on Tuesday that it had raised around 10 billion yuan ($ 1.49 billion) in a fund-raising round from investors including rival tech giants Alibaba Group Holding Ltd and Tencent Holdings Ltd.
CMC, formerly CMC Holdings which stretches from sports to amusement parks, said the A-round fundraising was led by the two tech firms along with new investors such as property developer China Vanke Co Ltd.
CMC, founded by media magnate Li Ruigang in 2015, added the firm was valued at around 400 billion yuan after the round.
Reporting by Adam Jourdan; Editing by Muralikumar Anantharaman
(Reuters) – Etsy Inc on Thursday raised its full-year revenue growth forecast, boosted by an increase in its transaction fee for sellers, sending shares of the company surging 35 percent to a record high.
The share jump pushed up the company’s market cap by $ 1.4 billion.
The site for handmade goods, which struggled after its initial public offering in 2015, began its turnaround effort after board member and former eBay executive Josh Silverman took charge as chief executive officer in May last year after ex-CEO Chad Dickerson stepped down.
Silverman came to Etsy amid concerns about slowing growth, poor functionality of the company’s website and the specter of competition from Amazon.com Inc, which launched a marketplace for handmade goods in 2015.
The company now expects revenue growth of 32 percent to 34 percent in 2018, up from its previous forecast of 22 percent to 24 percent. It also raised the higher end of its gross merchandise sales growth range.
Etsy’s share movement was in contrast to arts and crafts specialty retailer Michaels Cos Inc, which dropped 15 percent after it expected flat comparable sales in the second quarter and comparable sales growth of up to 1.5 percent in fiscal 2018.
Etsy, however has beaten average analysts’ estimates in every quarter since Silverman’s appointment to the helm. It missed estimates in the four quarters prior to his arrival.
The company’s shares have more than doubled in the last 12 months.
“Etsy management has improved its merchandising, which in turn has led to stronger merchant sales. As Etsy is doing more for the merchants, Etsy is able to charge more, especially since the fees were relatively cheaper than competitors,” analyst Ronald Bookbinder of IFS Securities said.
Etsy said it would increase the transaction fee it charges when a seller makes a sale to 5 percent from 3.5 percent. The new fee would apply to the cost of shipping.
The company said it plans to increase direct marketing spending by at least 40 percent in 2018 and revamp community platforms.
Etsy has shifted its focus to areas that are showing the most growth for the handmade marketplace, particularly on its core e-commerce site.
The company has improved its website’s search function and uses artificial intelligence to provide better product recommendations for customers. In 2017 the company also ran holiday promotions for the first time.
“They took that really good business model and fine tuned the engine and now they have got that engine firing on all cylinders,” D.A. Davidson & Co. analyst Tom Forte said.
Reporting by Arjun Panchadar in Bengaluru; Editing by Bernard Orr and Shounak Dasgupta
LONDON (Reuters) – WhatsApp, the popular messaging service owned by Facebook Inc (FB.O), is raising its minimum age from 13 to 16 in Europe to help it comply with new data privacy rules coming into force next month.
It is not clear how or if the age limit will be checked given the limited data requested and held by the service.
Facebook, which has a separate data policy, is taking a different approach to teens aged between 13 and 15 in order to comply with the European General Data Protection Regulation (GDPR) law.
It is asking them to nominate a parent or guardian to give permission for them to share information on the platform, otherwise they will not see a fully personalized version of the social media platform.
But WhatsApp, which had more than 1.5 billion users in January according to Facebook, said in a blog post it was not asking for any new rights to collect personal information in the agreement it has created for the European Union.
“Our goal is simply to explain how we use and protect the limited information we have about you,” it said.
WhatsApp, founded in 2009, has come under pressure from some European governments in recent years because of its end-to-end encrypted messaging system and its plan to share more data with its parent, Facebook.
Facebook itself is under scrutiny from regulators and lawmakers around the world since disclosing last month that the personal information of millions of users wrongly ended up in the hands of political consultancy Cambridge Analytica, setting off wider concerns about how it handles user data.
WhatsApp’s minimum age of use will remain 13 years in the rest of the world, in line with its parent.
GDPR is the biggest overhaul of online privacy since the birth of the internet, giving Europeans the right to know what data is stored on them and the right to have it deleted.
Apple Inc (AAPL.O) and some other tech firms have said they plan to give people in the United States and elsewhere the same protections and rights that Europeans will gain.
European regulators have already disrupted a move by WhatsApp to change its policies to allow it to share users’ phone numbers and other information with Facebook to help improve the product and more effectively target ads.
WhatsApp suspended the change in Europe after widespread regulatory scrutiny. It said on Tuesday it still wanted to share the data at some point.
“As we have said in the past, we want to work closer with other Facebook companies in the future and we will keep you updated as we develop our plans,” it said.
Other changes announced by WhatsApp on Tuesday include allowing users to download a report detailing the data it holds on them, such as the make and model of the device they used, their contacts and groups and any blocked numbers.
“This feature will be rolling out to all users around the world on the newest version of the app,” it said.
The blog post also points to safety tips on the service, such as the ability to block unwanted users, and delete and report spam.
Reporting by Paul Sandle; Editing by Adrian Croft
FRANKFURT/LONDON (Reuters) – Germany’s SAP (SAPG.DE) announced upbeat results in the seasonally tough first quarter, saying it was gaining ground on its main competitors Salesforce (CRM.N) and Oracle (ORCL.N) in the cloud and that its margin recovery was firmly on track.
SAP, Europe’s largest tech company by stock market valuation, also raised its sales and profits guidance for 2018 to take into account the $ 2.4 billion acquisition of U.S. sales software firm Callidus that was announced in January.
“We’re gaining share fast and we’re outpacing our toughest competitors pretty handily,” Chief Executive Bill McDermott told reporters on a conference call, calling the results strong at the top and bottom line.
SAP now expects total non-IFRS revenues at constant currencies this year of 24.8-25.3 billion euros ($ 30.28-$ 30.89 billion), representing growth of 5.5-7.5 percent, up from an earlier expectation of 5-7 percent growth.
Non-IFRS operating profits rose 14 percent in constant currency to 1.235 billion euros, compared to the average forecast of 1.19 billion euros in a Reuters poll of 15 analysts.
Cloud subscription and support revenues, SAP’s growth driver, grew by 18 percent to exceed 1 billion euros for the first time. At constant currencies they rose 31 percent, to which McDermott said: “Wow.”
Cloud growth accelerated outside the United States and grew faster than any of SAP’s major rivals, including Oracle, Salesforce and Workday (WDAY.O), he added SAP has faced currency headwinds due to the strong euro, and both the company and analysts focus on key metrics after adjustment for currency effects to get an underlying picture of performance.
Had SAP reported in U.S. dollars, like its competitors, the growth numbers would have turned out even better, said Chief Financial Officer Luca Mucic. Cloud subscriptions, for example, would have shown year-over-year growth in the first quarter of 37 percent in U.S. dollar terms, he said.
“We grew faster than every ‘best-of-breed’ cloud (competitor) out there,” McDermott said. “Faster than Workday, a lot faster than Salesforce, and a lot faster than Oracle.”
Mucic said that an expansion of 1.1 percentage points in operating margins in the first quarter boded well for SAP after a strong showing in the same quarter a year ago.
($ 1 = 0.8191 euros)
Reporting by Douglas Busvine and Eric Auchard; Editing by Tom Sims
(Reuters) – Alphabet Inc’s Google is raising the price of its YouTube TV online service for new customers as it adds channels from Time Warner Inc’s Turner, National Basketball League and Major League Baseball, the company said Wednesday.
Less than one year after launching YouTube TV, the company is increasing its pricing to $ 40 per month from $ 35 per month as it adds Turner’s channels, which include TNT, CNN and TBS, and soon will be adding MLB Network and NBA TV, the company said.
Google is expanding its offering at a time when a growing number of competing services, such as Dish Network Corp’s Sling TV, AT&T’s DirecTV Now and Hulu, are vying to win over the growing number of viewers who are cancelling their cable subscriptions to watch their favorite shows online.
The four largest cable and satellite companies lost 1.5 million pay TV customers in 2017.
DirectTV Now has over 2 million subscribers, according to AT&T. Sling TV, Hulu and YouTube TV do not disclose how many users they have, but research firm BTIG estimates they respectively had 2.1 million, 500,000 and 350,000 as of the end of 2017.
The costs for these competing offerings range from $ 20 for Sling TV’s most basic offering of 30 channels to $ 39.99 for Hulu’s one with more than 50 channels and its library of shows and movies, which costs $ 7.99 separately.
Google is betting that its strong sports offering will help win over more subscribers, said Heather Moosnick, director of content partnerships, YouTube TV.
“Sports is really one of the key offerings that a millennial would be willing to pay for a live TV service,” she said.
To that end, Google has targeted sports fans with its TV ads this year. Ninety-six percent of YouTube TV’s ads on television so far this year have appeared during sports programming, including the Super Bowl, according to iSpot.tv, which tracks TV ads.
When Google launched YouTube TV last April it was cautious with how much content it was offering so that it could keep the price low enough to entice cord cutters or people considering cutting the cord, Moosnick said.
At launch YouTube TV offered almost 50 channels in five markets. With these additions, YouTube TV will have almost 60 channels, and be in 100 markets, Moosnick said.
The new pricing will take effect for new users who sign up after March 13, the company said.
Reporting By Jessica Toonkel; Editing by Susan Thomas
TEL AVIV (Reuters) – Swiss-Israeli technology firm Sirin Labs said on Thursday it had raised $ 118 million in an initial coin offering (ICO) to support the development of an open source blockchain smartphone.
ICOs allow startups founded on cryptocurrency technologies such as blockchain to quickly raise capital by issuing virtual tokens to investors.
Such offerings have become more common in the past year, but Europe’s top markets regulator warned last month they were “extremely risky and highly speculative investments.”
Sirin, which has recruited soccer superstar Lionel Messi to be its brand ambassador, said it had raised the money from 5,600 people globally within the first 24 hours and would continue the offering for another 12 days.
“These are our potential clients. We think they will be the first to buy the phones,” Moshe Hogeg, CEO and founder of Sirin, told reporters.
The ICO will help fund its secure blockchain phone, as well as a blockchain personal computer. The company said the phone, which should be on the market near the end of next year, benefits from enhanced security and the ability to carry out fee-less transactions.
Hogeg said his target had been to raise $ 75 million – the amount needed to develop the phone. The additional funds will enable the company to increase its production and invest more in sales and marketing.
Reporting by Ari Rabinovitch and Tova Cohen; Editing by Mark Potter
(Reuters) – Uber rival Lyft Inc is raising an additional $ 500 million in funding, according to a U.S. share authorization document filed in Delaware news website Axios said. (bit.ly/2BhebbU)
The additional funding round, led by Alphabet Inc’s CapitalG, is an extension of the $ 1 billion round announced in October.
Lyft spokesman Adrian Durbin, confirming the funding round, in an e-mailed statement said, “Increasing the potential for this round will allow us to further accelerate our commitment to serving passengers and drivers.”
In October Lyft had said that the previous round of funding boosted its valuation to $ 11 billion from $ 7.5 billion. The fresh funding would raise its valuation to $ 11.5 billion.
Reporting by Sangameswaran S in BengaluruEditing by Greg Mahlich
Mattermark, which has evolved rapidly from a database to help investors rank startups to a sales intelligence service, today announced that it has raised $ 7.3 million in series B funding and is valued at $ 42 million. The equity investment was led by Foundry Group and Jon Hallett, with participation from existing investors. (Disclosure: VentureBeat occasionally publishes opinion pieces from Foundry Group’s Brad Feld.) Total funding to date is $ 18.4 million.
Above: Mattermark’s founders: Kevin Morrill, Danielle Morrill, and Andy Sparks.
According to co-founder and CEO Danielle Morrill, “we’ve evolved a lot from our ‘Bloomberg for Startups’” origins and the startup is finding success with its sharpened focus.
Based in San Francisco, the three-year old Mattermark now has 50 employees, 500 customers drawn from the ranks of large corporations, private equity, and sales and marketing firms, and is generating $ 300,000 in monthly revenue, according to a company statement. The company will use the investment to build out its sales force and continue creating what it calls “an unkillable SaaS company.”
Mattermark’s service offers one-click integrations with a wide range of sales tools like LinkedIn and Salesforce, spreadsheets like Microsoft Excel and Google Sheets, and an API for software developers to write custom solutions that tie into the Mattermark platform. Mattermark’s customers use the service for lead discovery and qualification, detailed company information, as well as up to the minute data on a prospect’s brand footprint and employee headcount trends.