What to Watch as Uber, PayPal, Roku and Others Report This Week

There are still quite a few well-known tech companies that haven't shared their calendar Q1 reports, and a lot of them will be doing so over the next couple of days.

Here's a look at consensus sales and EPS estimates for Uber (UBER) , Lyft (LYFT) , PayPal (PYPL) , Roku (ROKU) , Microchip Technology (MCHP) and Shopify (SHOP) , along with one thing in particular to watch as the companies report this week.

Uber and Lyft

When They Report: Lyft reports on Wednesday afternoon, and Uber on Thursday afternoon.

Consensus Estimates: Uber is expected to report Q1 revenue of $3.55 billion (up 15% annually) and GAAP EPS of negative $0.80. For Q2, consensus estimates are for revenue of $3.03 billion (down 5%) and EPS of negative $0.70.

Lyft is expected to report Q1 revenue of $890 million (up 15% annually) and GAAP EPS of negative $1.30. For Q2, consensus estimates are for revenue of $592 million (down 32%) and EPS of negative $1.39.

One Thing to Watch: Cash burn. With Uber and Lyft's revenue and bookings having fallen sharply over the last two months, investors want to see signs that (with the help of cost-cutting actions) the companies have been able to keep their cash burn from getting out of hand.

Currently, the consensus is for Uber to post free cash flow (FCF) of negative $953 million in Q1 and negative $1.13 billion in Q2. For Lyft, Q1 and Q2 consensus estimates are respectively at negative $206 million and negative $388 million.

PayPal

When They Report: Wednesday afternoon.

Consensus Estimates: PayPal is expected to report Q1 revenue of $4.74 billion (up 15%) and non-GAAP EPS of $0.75. For Q2, consensus estimates are for revenue of $4.8 billion (up 12%) and EPS of $0.77.

One Thing to Watch: Payment volume and transaction/loan loss metrics. Healthy e-commerce activity and higher digital content consumption is believed to be helping PayPal cope with a weak macro environment. Following 22% growth in Q4, total payment volume (TPV) is expected to be up 21% annually in Q1, and 18% in Q2.

On the other hand, the current macro environment might be leading PayPal's transaction and loan loss rate, which was a modest 0.19% in Q4, to tick higher.

Roku

When They Report: Thursday afternoon.

Consensus Estimates: Roku is expected to report Q1 revenue of $305 million (up 48%) and GAAP EPS of negative $0.46. For Q2, consensus estimates are for revenue of $312 million (up 25%) and EPS of negative $0.44.

One Thing to Watch: Ad sales trends. As Roku's April 22 pre-announcement makes clear, COVID-19 lockdowns have boosted viewing activity for Roku's platform. But with ad spend in general, and brand ad spend in particular, currently under pressure, any commentary that Roku shares about its current ad revenue growth rates will get a lot of attention.

Roku's Platform (non-hardware) revenue, which accounts for the lion's share of its gross profit and is fueled in large part by ad sales, is expected to come in at $218 million in Q1 (up 63%) and $220 million in Q2 (up 31%).

Microchip Technology

When They Report: Thursday afternoon.

Consensus Estimates: Microchip is expected to report March quarter (fiscal third quarter) revenue of $1.32 billion (down 1%) and non-GAAP EPS of $1.36. For the June quarter, consensus estimates are for revenue of $1.26 billion (down 5%) and EPS of $1.27.

One Thing to Watch: Order/bookings commentary. In its April 8 pre-announcement, Microchip, which has a very diverse customer base and has sometimes spotted demand changes ahead of peers, said its backlog was up 9% from where it stood three months earlier. However, the company also suggested that it thinks inventory-building was contributing to the backlog growth, and said that it believes "product demand is likely to weaken significantly."

As a result, it's worth keep an eye out for both Microchip's commentary about current orders trends and its remarks about how it sees demand trending going forward.

Shopify

When They Report: Wednesday morning.

Consensus Estimates: Shopify is expected to report Q1 revenue of $443 million (up 38%) and non-GAAP EPS of negative $0.19. For Q2, consensus estimates stand at $457 million and negative $0.07.

One Thing to Watch: GMV and merchant activity metrics. Healthy e-commerce activity, together with Shopify's own commentary about how activity on its platform has been trending, has helped Shopify's stock rocket to new highs. Markets will likely be paying close attention to metrics that help quantify just how large of an activity boost Shopify, which has begun providing merchants with 90-day free trials and other incentives to start using its platform, has witnessed since February.

The consensus is for Shopify's gross merchandise volume (GMV) to be up 42% annually in Q1 and 32% in Q2, following 47% growth in Q4.