CE 100 Gains 1.9% as XPO and Adyen Surge on Earnings but Snap Plunges

Earnings season winds on, and earnings season dictates — at least for now — how the stocks move.

The CE 100 Index gained 1.9%, buoyed by gains in the Move sector, which added 5.2%.

XPO surged 26%, leading the Move sector higher.

The company said that in its latest quarter, revenues were up 6% year on year to $1.9 billion. The year-over-year increase in revenue was due primarily to higher yield, excluding fuel, and an increase in tonnage per day in North American operations. Net income from continuing operations was $58 million, compared to a net loss last year.

In the North American segment, the less-than-truckload segment generated revenue of $1.2 million for the fourth quarter 2023, compared with $1.1 billion for the same period in 2022. On a year-over-year basis, shipments per day increased 5.7%.

Adyen followed with a 21.4% gain for the week, underpinning the Pay and Be Paid segment’s 3.4% jump.

In the most recent quarter, the details showed a 29% jump in processing volume and a 23% increase in net revenues. The company said in a shareholder letter that “H2 validated our ability to execute on our long-term approach … As a result of this discipline, we scaled our global team to its most far-reaching to date and grew with our customers across each pillar.”

The company said Thursday that North America continues to be an important market, noting in the shareholder’s letter the opportunity presented by the “digital sophistication” of the region.

CyberArk’s 19% surge rounded out the top performers for the week. In earnings released this week, the company noted that in its own fourth quarter, subscription revenue was $150.3 million, up 70% from $88.5 million in the fourth quarter of 2022. Total revenue was $223.1 million in the fourth quarter of 2023, up 32% from $169.2 million in the fourth quarter of 2022, outperforming guidance. Recurring revenue in the fourth quarter was $201.5 million, an increase of 41%.

Snap’s Shares Plunge and DocuSign Targets a Restructuring

Snap gave up more than 34%, and the parent company of Snapchat’s decline dragged the Communicate pillar 11.8% lower.

As we noted in this space, results showed that Snapchat has grappled with declining revenue per user, and the company is banking on its subscription offering — and its artificial intelligence (AI) capabilities therein — to bring in top line torque.

The app’s parent company, Snap, reported in its Q4 and full year 2023 financial results Tuesday (Feb. 6) that average revenue per user (ARPU) dipped 5% year over year in the quarter, even as it rose by 2% in North America.

Looking toward “accelerating and diversifying” its revenue growth going forward, the company highlighted its Snapchat+ subscription as a key growth area, adding more AI offerings to the program to make it more appealing to potential subscribers.

These efforts to drive paid subscriptions come as overall engagement with the platform continues to rise, with the social media app reporting a 10% year-over-year increase in daily active users in the quarter.

DocuSign lost nearly 12%. Sources such as Reuters noted earlier in the week that deal talks between DocuSign, Bain Capital and Hellman & Friedman had stalled.  DocuSign said this week that it is undertaking a restructuring plan that is “design to strengthen and support the company’s financial and operational efficiency.” The firm expects to meet or exceed its fourth quarter and FY 2024 financial guidance. The restructuring plan is targeting a 6% workforce reduction.