Earnings

Verizon earnings: Store closures hit hard

Verizon
  • Q1 revenue: $31.6 billion (-1.6% YoY ,-9.2% QoQ, vs. $32.38 billion expected)
  • Q1 earnings: $4.3 billion (-16.9% YoY, -15.9% QoQ, above expectations)
  • Full-year guidance: Verizon withdrew its revenue guidance and reduced its earnings guidance: It now expects earnings growth of between -2% and 2%.

The big number: Verizon lost 525,000 wireless retail postpaid customers last quarter, which it attributed to the shutdown of most of its retail locations.

People are talking: "We will emerge from this crisis stronger, knowing we provided critical connectivity to our customers," said Hans Vestberg.

Opportunities: Verizon's business segment performed better than the consumer segment, citing higher demand in March as companies moved to remote working.

Threats: Verizon was hit particularly hard between March 15 and April 15 as the coronavirus crisis worsened. The company reported a 49% drop in consumer wireless gross adds year-on-year, although "global enterprise, public sector and other" customer additions increased 163% year-on-year.

The power struggle: Verizon has spent recent years trying to position itself as a media business, but that's made it vulnerable to ad revenue declines. Although Verizon reported monthly active users up 22% year-on-year between March 15 and April 15, it said ad and search revenue is declining.

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Protocol team

A new media company from the publisher of POLITICO reporting on the people, power and politics of tech.

If you've ever tried to pick up a new fitness routine like running, chances are you may have fallen into the "motivation vs. habit" trap once or twice. You go for a run when the sun is shining, only to quickly fall off the wagon when the weather turns sour.

Similarly, for many businesses, 2020 acted as the storm cloud that disrupted their plans for innovation. With leaders busy grappling with the pandemic, innovation frequently got pushed to the backburner. In fact, according to McKinsey, the majority of organizations shifted their focus mainly to maintaining business continuity throughout the pandemic.

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Protocol | Workplace

Productivity apps can’t stop making money

ClickUp had one of the biggest Series C funding rounds ever. Here's how it matches up to the other productivity unicorns.

ClickUp made $400 million in its series C funding round.

Photo: ClickUp

Productivity platform ClickUp announced a milestone today. The company raised $400 million, which is one of the biggest series C funding rounds in the workplace productivity market ever. The round, led by Andreessen Horowitz and Tiger Global, put the private company at a $4 billion valuation post-money.

In case it's not clear: This is a massive amount of money. It shows how hot the productivity space is right now, with some predicting the market size could reach almost $120 billion by 2028. In a world of hybrid workers, all-in-one tool platforms are all the rage among both startups and productivity stalwarts. Companies everywhere want to escape tool overwhelm, where work is spread across dozens of apps.

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Lizzy Lawrence

Lizzy Lawrence ( @LizzyLaw_) is a reporter at Protocol, covering tools and productivity in the workplace. She's a recent graduate of the University of Michigan, where she studied sociology and international studies. She served as editor in chief of The Michigan Daily, her school's independent newspaper. She's based in D.C., and can be reached at llawrence@protocol.com.

The Supreme Court of the United States
Photo: Angel Xavier Viera-Vargas

If a company resolved a data breach in the past, does it need to disclose the potential negative fallout of that breach as a risk to investors later on? In a new petition asking the Supreme Court to take up the question, Alphabet is arguing emphatically: no. And it's using the ol' "the past is history, tomorrow's a mystery" defense.

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Issie Lapowsky

Issie Lapowsky ( @issielapowsky) is Protocol's chief correspondent, covering the intersection of technology, politics, and national affairs. She also oversees Protocol's fellowship program. Previously, she was a senior writer at Wired, where she covered the 2016 election and the Facebook beat in its aftermath. Prior to that, Issie worked as a staff writer for Inc. magazine, writing about small business and entrepreneurship. She has also worked as an on-air contributor for CBS News and taught a graduate-level course at New York University's Center for Publishing on how tech giants have affected publishing.

Protocol | Workplace

Facebook’s hiring crisis: Engineers are turning down offers

"All of you are now starting to experience that major imbalance between supply and demand — and it doesn't feel good," a recruiting leader wrote in an internal memo.

Here are all the Facebook Papers stories
Image: Getty Images, Protocol

Facebook cannot find enough candidates to meet engineering demand, especially in the Bay Area, and has struggled and failed to meet early 2021 recruiting goals, according to a detailed internal memo outlining recruitment strategy and hiring pains.

The company also failed to meet hiring goals in 2019, which frustrated CEO Mark Zuckerberg, and it built an ad-hoc team of leaders to create an emergency plan to address the painful shortage, according to disclosures made to the Securities and Exchange Commission and provided to Congress in redacted form by Frances Haugen's legal counsel. A consortium of news organizations, including Protocol, has reviewed the redacted versions received by Congress.

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Anna Kramer

Anna Kramer is a reporter at Protocol (Twitter: @ anna_c_kramer, email: akramer@protocol.com), where she writes about labor and workplace issues. Prior to joining the team, she covered tech and small business for the San Francisco Chronicle and privacy for Bloomberg Law. She is a recent graduate of Brown University, where she studied International Relations and Arabic and wrote her senior thesis about surveillance tools and technological development in the Middle East.

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