Q3 Earnings Are In

In our Q2 Digital Strength Index Report, we made predictions about which companies are winning and lagging behind in digital and the implications for their Q3 results.   As we’re in the midst of earnings, we decided to take a look back at how well our predictions held up.

NIKE – Nike is putting digital at the center of their growth strategy and shifting their business model to sell directly to consumers and “invent new ways to combine digital and retail”.   Nike made our Biggest Movers list in Q2 with an average DSI score of 92, which was a big jump from Q3 2017 where they came in at 59.  As a refresher, the DSI score ranks the “digital strength” of a company. Their Q3 earnings beat expectations, despite reporting a weaker than expected gross margin which executives attributed to continued investments in digital.  We believe Nike’s continued investment in digital will continue to pay off over the long term.

DUNKIN BRANDS – Dunkin announced third quarter earnings and, as we predicted, beat analyst expectations in both revenue and earnings. Like Nike, Dunkin also made our Biggest Movers List in Q2 with an average DSI score of 98.  Their recent decision to drop Donuts from their name has been the topic of much analysis and creative debate .  We believe the change and their continued investment in convenient customer experiences will continue to pay off in their future financial performance.

MICROSTRATEGY INCORPORATED  – MicroStrategy, an enterprise business intelligence application software provider, reported third quarter earnings that beat EPS expectations, but missed revenue expectations by $4.46M resulting in a 3.1% Y0Y decline.   MicroStrategy’s Digital Strength Index has been fluctuating greatly quarter over quarter, with Q2 2018 coming in at its lowest in the last year at 34.  Despite being the sole Challenger in Gartner’s 2018 Magic Quadrant for Analytics and BI Platforms, the company faces competition from Microsoft and Tableau who are ranked in the Leader quadrant and also have DSI scores consistently in the top 25%.

These earnings prove, as does the DSI, the importance of the investing in digital.  How will these companies fare this last quarter and heading into the New Year? Check back!

More News

| 19th Jan 2021

How Physicians Can Put the Care into Virtual Care

Virtual care is here to stay. And it's an opportunity for providers to provide a better patient experience.

| 12th Jan 2021

TikTok, TikTok: Why 2021 is the Year of Live Commerce

The pandemic accelerated a shift to e-commerce by five years, so live commerce is having a moment. And 2021 is barely under way.

| 7th Jan 2021

Brace Yourselves: 2021 Will Change Everything about Digital Creative

If 2020 was about brands trying to win a race to create the best digital experience possible, 2021 is about rethinking the digital experience completely.