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HPE is back in black with $9m profit due to right-back of taxes

Mohammed Fahad
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HPE is back in black with $9m profit due to right-back of taxes
  • Operating profit stood at $12m in the third quarter compared to a loss of $76m a year ago.
  • Its revenues decline close to 6% to $6.8b.
  • Annualised revenue run-rate increases by 11% to $528m and reduces its second-quarter backlog by more than $500m through improved supply chain execution.
  • CEO sees edge as a significant opportunity over the long-term.

Bengaluru: Hewlett Packard Enterprise (HPE) is back in black with a profit of $9 million in the third quarter of this year compared to a loss of $27 million a year ago, due to right-back of taxes.

The US-based company reported a $34 million loss before taxes but it got $43 million as benefit from taxes in the third quarter.

Its operating profit stood at $12 million in the third quarter compared to a loss of $76 million a year ago.

HPE revenues declined close to 6 per cent to $6.8 billion in the third quarter compared to $7.2 billion a year ago.

“We significantly improved operational and supply chain execution and advanced our innovation agenda with the introduction of HPE GreenLake cloud services solutions, our new HPE Ezmeral software portfolio, and our planned acquisition of SD-WAN leader Silver Peak,” Antonio Neri, President and CEO of Hewlett Packard Enterprise, said.

Moreover, he said that the company gained momentum in key areas of differentiation and accelerated our as-a-service pivot with strong annualised revenue run-rate (ARR) growth and a record number of HPE GreenLake services orders.

HPE’s ARR increased by 11 per cent to $528 million and reduced its second-quarter backlog by more than $500 million through improved supply chain execution.

“We expect to return to normalised level of backlog by the end of fourth quarter through continued improvements in both supply chain execution and customer acceptances.“ Neri said.

HPE GreenLake services orders grew a record 80 per cent from the prior-year period or 82 per cent when adjusted for currency.

Competitive differentiation

Neri believes that this is faster than the growth of the order of public cloud vendors and it is a validation of its hyper strategy and competitive differentiation.

“We are focused on delivering one seamless cloud experience for all applications and data, no matter where they exist; at the edge, in a data center, in a colocation, or in a public cloud estate. While others are publicly declaring plans to offer everything-as-a-service, we have been focused on this for several years and have made significant organic and inorganic investments to deliver a differentiated experience for our customers,” he said.

HPE chief continues to see the edge as a significant opportunity over the long-term and the explosion of data devices and application will drive demand for secure multi-protocol connectivity, analytics and cloud computing capabilities at the edge, especially in the post-Covid world.

“We are now entering the edge of insights, driven by the amount of data we are generating and the utilization of new analytic tools, such as machine learning and artificial intelligence technologies. Customers are looking to power a new breed of applications and workloads that work in concert with the cloud, but analyze and process data at the edge,” he said.

Navigating through the pandemic and planning for a post-Covid world have increased customers’ needs for as-a-service offerings, secure connectivity, remote work capabilities and analytics to unlock insights from data that are aligned to its strategy, he said.

Board of Directors have declared a regular cash dividend of $0.12 per share on the company’s common stock. This dividend, the fourth in Hewlett Packard Enterprise’s fiscal year 2020, is payable on October 7, 2020, to stockholders of record as of the close of business on September 9, 2020.

TVS ASL to create digital ecosystem via Google Cloud

TCN Bureau
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TVS ASL to create digital ecosystem via Google Cloud
  • Aims to bring vehicle owners, retailers, garages and insurance companies from a fragmented market place into one seamless digital technology architecture.

Bengaluru: TVS Automobile Solutions that deal with thousands of small entrepreneurs across automotive retailers and garages is ramping up its digital presence in an effort to create a seamless aftermarket landscape and has picked Google Cloud as its technology partner to do so.

The new digital transformation strategy means that TVS ASL will advance its goal of creating a ‘Digital Ecosystem’ to bring vehicle owners, retailers, garages and insurance companies from a fragmented market place into one seamless digital technology architecture to provide service, parts, roadside assistance and insurance.

The Indian Independent Automotive Aftermarket is estimated around $10 billion and growing at an annual growth rate of 7-10 per cent over the past five years. The market is highly fragmented with over 40,000 retailers, 100,000 garages and thousands of small distributors across the country.

The move comes as more and more companies are moving digital amidst the Covid-19 pandemic.

Digital transfornation

According to Gartner, the pandemic has influenced the emergence of the distance economy, or business activities that don’t rely on face-to-face activity.

Organisations with operating models that depend on first-party or hosted events have switched quickly to virtual alternatives. And those who are not present are rushing to do so.

TVS ASL has already migrated its on-premises data centre infrastructure and existing public cloud deployments onto Google Cloud to develop the ‘platform of platforms’ tailored to the needs of the automotive industry.

“The range of solutions include Connected Vehicle (passenger cars, two wheelers and commercial vehicles), Diagnostics & Predictive Service Management on Cloud, Mobility solutions for all stakeholders to address their requirements and real time integration with all stakeholders for fulfilment,” G. Srinivasa Raghavan, Managing Director, TVS Automobile Solutions said.

“We selected Google Cloud for its superior tech stack across Cloud, Artificial Intelligence and Machine Learning, Big Data, Marketing & Marketplace solutions that will enable us to scale globally with shorter time to market,” he added.

Karan Bajwa, Managing Director, Google Cloud India said, “They are unlocking the potential of their business data at scale using machine learning to automate and optimise their supply chain, and leveraging managed services so they can focus their engineering effort on IT-led business initiatives that will pave the path for a strong digital future.”

Mobile gaming revenues increase 26% to $36.8b in first half

TCN Bureau
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Mobile gaming revenues increase 26% to $36.8b in first half
  • Apple store generates $22.2b and Google store generates $14.6b in first half.
  • Apple store generates more gaming revenues while Google Play dominates number of downloads.

Bengaluru: Mobile gaming revenues in the first half of this year increased by 26 per cent year on year to $36.8 billion, driven by the boosted user engagement amid the Covid-19 lockdowns.

According to statistics by Sensor Tower and Statista, iPhone users generated 60% of that value. In the first quarter of this year, the App Store revenue amounted to $10.6 billion, an 18% increase year-on-year and in the second quarter of the year; it rose to $11.6 billion.

However, Google Play store generated $14.6 billion in mobile gaming revenue in the first half of the year, $6.9 billion in the first quarter and $7.7 billion in the second quarter.

Although the App Store generated more gaming revenues during the first half of the year, the Sensor Tower data revealed Google Play dominates in the number of downloads.

In the first quarter of 2020, Google Play hit 10.4 billion mobile games downloads, a 39 per cent jump year-on-year. The number of downloads continued rising and jumped to 12.4 billion in the second quarter of the year. Statistics show the total number of downloads in Google Play store during the first half of 2020 amounted to 22.8 billion, a 52 per cent increase year-on-year.

The Sensor Tower data show the number of mobile game downloads in the App Store reached 5.7 billion during the first half of the year, four times less than Google Play.

Fitbit’s new Sense watch announced with world’s most advanced sensor

TCN Bureau
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Fitbit’s new Sense watch announced with world’s most advanced sensor
  • It is equipped with an advanced heart rate tracking technology, new ECG app and an on-wrist skin temperature sensor.
  • Along with Sense, Fitbit also introduced Versa 3 and Inspire 2.

Bengaluru: Fitbit unveiled three new devices – one of which can measure your stress levels thanks to the world’s first electrodermal activity (EDA) sensor on a smartwatch.

Apart from measuring the user’s stress levels, the new $330 smartwatch is also equipped with an advanced heart rate tracking technology, new ECG app, and an on-wrist skin temperature sensor.

It also features GPS, a speaker for voice assistant and phone calls, over 6 days of battery life and a magnetic snap-on charger.

Users can opt for a premium membership – free for the first six-months – to access some of the key metrics such as heart rate variability (HRV), breathing rate, and SpO2, through the new Health Metrics dashboard.

Along with Sense, Fitbit also introduced Versa 3 and Inspire 2. Versa 3 comes with new health, fitness, and convenience features, including GPS and the addition of Google Assistant.7, while Inspire 2 gets up to 10 days of battery life.

Fitbit breaks new ground

“We are breaking new ground with our wearables, helping you better understand and manage your stress and heart health,” James Park, co-founder and CEO, Fitbit said.

“It will pull your key health metrics together in a simple and digestible way to track things like skin temperature, heart rate variability, and SpO2 so you can see how it’s all connected,” he added.

The new EDA sensor on Fitbit Sense measures electrodermal activity responses. Using the EDA Scan app, place your palm over the face of the device to detect small electrical changes in the sweat level of your skin.

Fitbit’s new Stress Management Score calculates how your body is responding to stress based on your heart rate, sleep and activity data. Available with Fitbit Sense, it can be found in the new stress management tile in the Fitbit app.

Fitbit Premium members will get a detailed breakdown on how the score is calculated, which consists of over 10 biometric inputs, including exertion balance (impact of activity), responsiveness (heart rate, heart rate variability and electrodermal activity from the EDA Scan app), and sleep patterns (sleep quality).

Both Fitbit Versa 3 and Fitbit Sense will utilize the same magnetic charger. With an already long battery life of 6+ days on each device.

Fitbit Sense will start retailing in India from October and is priced at Rs33,999 while, the Versa 3 is priced at Rs25,999. Inspire 2 is priced at Rs10,999.

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Salesforce second-quarter profit skyrockets on one-off income tax benefits

TCN Bureau
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Salesforce second-quarter profit skyrockets on one-off income tax benefits
  • Revenues increase by 29% to $5.15b compared to $3.99b a year ago.
  • Company to replace ExxonMobil in 30-stock Dow Jones Industrial Average on August 31.
  • Company recorded approximately $2b of benefit from income taxes due to a one-time discrete tax item from the recognition of deferred tax assets related to an intra-entity transfer of intangible property.

Bengaluru: Salesforce registered one of the best quarters for an enterprise cloud firm with profit skyrocketing 2,785 per cent to $2.6 billion in the second quarter compared to $91 million a year ago due to one-off income tax benefits.

During the three months ended July 31, 2020, the company recorded approximately $2 billion of benefit from income taxes due to a one-time discrete tax item from the recognition of deferred tax assets related to an intra-entity transfer of intangible property. 

 “It’s humbling to have had one of the best quarters in Salesforce’s history against the backdrop of multiple crises seriously affecting our communities around the world,” Marc Benioff, Chair and CEO of Salesforce, said.

The American cloud-based software company that specialises in customer relationship management (CRM) is to replace ExxonMobil in the 30-stock Dow Jones Industrial Average on August 31.

Its shares are trading at $273.52, up more than 26.6% on Wednesday. It is just shy of a 52-week high of $277.97.

The company’s revenues rose by 29% to $5.15 billion compared to $3.99 billion a year ago.

Subscription and support revenues for the quarter were $4.84 billion, an increase of 29% year-over-year. Professional services and other revenues for the quarter were $0.31 billion, an increase of 23% year-over-year.

Victory for stakeholder capitalism

The revenue from its cloud businesses stood at $1.28 billion, growing 13% on an annualised basis.

“This has been a challenging time for so many of us,” Benioff said during an interview to CNBC TV.

“We made key changes to our business so that we could go forward and go faster and that is why I’m so excited about this quarter. And also, this is a victory for stakeholder capitalism. We did a great job for our shareholders this quarter, but we did a great job for our stakeholders as well. This is a moment when we need to be thinking about not just how to serve all of our customers, but also how to take care of our communities.”

 “In response to Covid-19, service leaders in every industry had to quickly adapt and find new ways to support employees while still delivering quality service to their customers,” said Mark Cattini, SVP of Field Service Management at Salesforce.

“This is one of the areas where Field Service Lightning shines, with AI-powered scheduling and resource optimisation that ensure technicians arrive at the right time, with the knowledge to successfully complete tasks the first time. This helps keep both the technician and customer safe.”

How Covid-19 has shifted consumers’ behaviour on mobile?

Naushad K. Cherrayil
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How Covid-19 has shifted consumers’ behaviour on mobile?
  • Mobile apps and games download registered a 10% in the first half of the year compared to second half of last year, topping 64b.
  • News apps stand to see sustained engagement throughout the second half of this year as consumers seek to stay informed on Covid-19 and major political events.

Dubai: From gaming to shopping to payments to video conferencing, Covid-19 has reshaped our lives dramatically and the smartphone has taken the centre stage and shifted the consumer landscape to a mobile-first world.

Lexi Sydow, Senior Market Insights Manager at mobile data and analytics platform App Annie, said that the coronavirus has advanced mobile usage by two to three years with the consumer demand for mobile offerings surging in the first half of the year.

“Mobile apps and games download, combining both Android and Apple play stores globally, in the first half of the year topped 64 billion, registering a growth of 10 per cent compared to the second half of last year.”

She said downloads are considered as completely new and not app updates or reinstallation on new devices.

“News apps stand to see sustained engagement throughout the second half of this year as consumers seek to stay informed on Covid-19 and major political events, exploring cross-app usage for partnerships and ad opportunities within traditional news apps and social and video-oriented platforms,” she said.

Global monthly downloads

The demand surged in April and the average monthly downloads of apps and games increased more than 25 per cent compared to the second half of last year. Consumers reached for their smartphones for connection, entertainment, exploration and information during critical times. 

In the first half, consumers spend on apps and games hit $50 billion globally, up 10 per cent compared to the second half of last year. Consumers spend on games peaked in May at $6.8 billion. Consumers set new records for global app store consumer spend in May 2020 at $9.6 billion.

Downloads in 2019 alone topped 12.3 billion while consumer spend hit $120B in 2019.

Weekly average time spend

Consumers spend over 1.6 trillion hours in the first half only on a mobile. It peaked in March, more than 25 per cent from the weekly average in the second half of last year. In 2019, consumers averaged three hours and 40 minutes on mobile. Time spends are likely to soften as countries are easing lockdowns but it will still be better than pre-Covid.

Daily hours spend 

An average user spent 27% of daily waking hours on mobile in April, up 20 per cent from 2019 to four hours and 30 minutes per day. In India, the usage peaked by 37 per cent in the second quarter to 4.8 hours and ranked second compared to Indonesia, which ranked first, where the usage peaked to six hours in the second quarter. Mobile-first emerging markets like Indonesia, China and India continue to spend the most time on mobile each day.

Power users

During Covid, the top 10% of average power users spent 6.5 hours per day. Power users in India, which is ranked third, spent 8.9 hours per day on average while in Indonesia which is ranked first, it is 10.4 hours per day.

Downloads and spend on games

Big growth in emerging markets in the first half of the year. In India, there was a 50 per cent growth in downloads to 4 billion and 55 per cent growth in consumer spending to $105 million when compared to the first half of last year.

Consumers not only turn to their most-loved mobile games for entertainment and connection but to seek out new games to play. Games are also expanding to new categories — Fortnite enabled gamers to watch the movie Inception the movie or attend a Diplo concert.

The biggest market is the US, followed by Germany and the UK.

There was a 35 per cent increase in the number of games played each month by the average user in India. Mobile gamers seek games beyond their go-to titles. Gaming is a huge part of the mobile economy. Mobile games in 2019 saw 25 per cent more spend than in all other gaming combined. Mobile has democratised gaming, allowing for a portable gaming console to be in the pocket of nearly every consumer.

Games by downloads

Hyper-casual games entertained the masses in the first half. In India, it was Hunter Assassin, followed by Ludo King, Ludo Games, Real Commando Secret Mission and Brain Out. In 2019, it was Carrom Pool, Free Fire, PUBG Mobile, Fun Race 3D and Sand Balls in India.

Growth in business apps

Consumers spent 220 per cent more time on mobile conducting work, driven by video conferencing, in the second quarter of this year compared to the fourth quarter of last year. India recorded the fastest growth with 450 per cent, followed by Russia with 355 per cent and South Korea with 325 per cent.

Video streaming

Consumers migrate to the little screen by spending more time than ever in streaming videos on mobile. Globally, consumers spend 25 per cent more time in the second quarter. TikTok saw a 45 per cent quarter-over-quarter growth while Twitch saw 60 per cent quarter-over-quarter growth in the US on iPhones.

Ranking second, there were 30 per cent growths in quarterly time spend in video streaming apps in India.  

Video streaming wars are set to intensify in the second half of this year amidst high profile launches and expansions like Disney+, Quibi and Peacock TV. Expect users to bounce between multiple video streaming apps to access a full suite of content while under Covid restrictions.

Finance apps

Amidst macroeconomic headwinds, consumers increased their engagement in finance apps as consumers turned to mobile to stay informed on financial markets and global economic trends — providing us with daily access to banking, stock markets and payment apps.

Success was driven by prioritizing features that meet consumers’ needs during COVID-19, including PayPal’s addition of QR codes for contactless payments on both Paypal and Venmo, direct deposit and business profiles on Venmo and increasing the scope of business profiles.

Paypal’s mobile growth was the main contributor to their earnings per share growing 86 per cent in the second quarter.

Education apps

As K-12 schools and universities pivot to a remote online-only model, time spent in education apps grew dramatically in markets experiencing surges in Covid cases.

Lifelong learning apps also grew as consumers turned to mobile to learn new skills to make them more competitive in a job market affected by macroeconomic conditions from the pandemic or to fill the increased time at home.

Global downloads of Udemy doubled from the fourth quarter of last year to the second quarter of this year as demand surged for continuing education.

In India, the growth was 70% in the second quarter compared to the fourth quarter of last year. In Brazil, the growth was 200 per cent.

Health and fitness

Consumer spend in the first half nears $1 billion. India recorded a 105 per cent growth in downloads to 160 million and 50 per cent growth in consumer spending to $10 million in the first half of this year compared to the first half of last year. The US recorded a 20 per cent growth in downloads to 210 million and a 5 per cent growth in consumer spend to $360 million.

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