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Citrix earnings: WFH drives a big earnings beat

Demand for remote-work tools drove revenue up 20% year-on-year.

  • Q1 revenue: $861 million (+20% YoY,+6.2% QoQ, vs. $733.7 million expected)
  • Q1 earnings: $181.2 million (+65% YoY, -12.5% QoQ, above expectations)
  • Q2 guidance: Citrix expects $760-770 million of revenue in Q2, up from $749 million last year. But it thinks earnings will fall significantly, from $93.5 million in Q2 2019 to $79-86 million this year.

The big number: Citrix pointed to a big increase in annualized recurring revenue, which was up 50% year-over-year. It said subscriptions make up an increasing proportion of its total bookings, offering investors a more stable return.

People are talking: "What used to be perceived as a requirement for a subset of employees has emerged as a mission critical enabler of business continuity," CEO David Henshall said in a letter to investors.

Opportunities: Citrix has been a big beneficiary of remote working, with its tools enabling companies to keep things online. Henshall said the "tailwind can be seen broadly across both perpetual and subscription licensing."

Threats: Though Citrix's leadership team stressed that the hardest-hit sectors of the economy — like restaurants — aren't big clients, it's still vulnerable to an economic downturn: "Customers are putting on hold discretionary projects and are less inclined to 'trade-up' from existing solutions as the economic environment continues to weaken," Henshall wrote.

The power struggle: Citrix thinks (and hopes) this crisis may have catalyzed a permanent change. "We expect business continuity and risk mitigation to rise as areas of importance in boardroom discussions and on IT priority lists," he said, adding that he believes "a greater number of employees will expect to continue to be able to work remotely."

Microsoft wants to replace artists with AI

Better Zoom calls, simpler email attachments, smart iPhone cases and other patents from Big Tech.

Turning your stories into images.

Image: USPTO/Microsoft

Hello and welcome to 2021! The Big Tech patent roundup is back, after a short vacation and … all the things … that happened between the start of the year and now. It seems the tradition of tech companies filing weird and wonderful patents has carried into the new year; there are some real gems from the last few weeks. Microsoft is trying to outsource all creative endeavors to AI; Apple wants to make seat belts less annoying; and Amazon wants to cut down on some of the recyclable waste that its own success has inevitably created.

And remember: The big tech companies file all kinds of crazy patents for things, and though most never amount to anything, some end up defining the future.

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Mike Murphy

Mike Murphy ( @mcwm) is the director of special projects at Protocol, focusing on the industries being rapidly upended by technology and the companies disrupting incumbents. Previously, Mike was the technology editor at Quartz, where he frequently wrote on robotics, artificial intelligence, and consumer electronics.

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