Key Takeaways WAT beat Q4 estimates with EPS up 10.5% and sales rising 7% year over year. Pharma and Industrial sales rose 8%, while Europe revenues climbed 13% reported.WAT guides 2026 EPS to $14.30-$14.50 on 5.5-7% constant currency sales growth.Waters Corporation (WAT) reported fourth-quarter 2025 non-GAAP earnings of $4.53 per share, which beat the Zacks Consensus Estimate by 0.67% and increased 10.5% year over year. Net sales of $932.4 million topped the Zacks Consensus Estimate by 0.55%. The figure in ...

Core Insights - Date Drop, an AI dating application developed by Stanford student Henry Weng, has gained significant traction among students, with over 5,000 registrations and 35,000 matches since its launch in September 2025 [1][3][4] - The app has attracted attention from Wall Street, securing $2.1 million in venture funding and is expected to expand beyond the university market [3][9] - The unique weekly matching format of Date Drop has created a viral phenomenon on campus, allowing students to engage in social discussions around the app's results [5][8] Company Overview - Date Drop utilizes a questionnaire with 66 questions covering values, lifestyle, and political views to match users, which helps reduce awkwardness in initial interactions [4][7] - The app's design encourages a low-pressure environment for users, making it easier to initiate connections without the typical challenges faced in traditional dating apps [7][8] - The platform's success is attributed to its low-cost advantages, including the use of Stanford email for registration, which simplifies identity verification and reduces operational costs [9][11] Market Potential - The app's transition from a university-focused platform to a broader market presents challenges, particularly in identity verification and safety concerns [11][12] - Traditional dating app revenue models, such as subscription services and premium features, may not align with Date Drop's unique value proposition of quick and simple matchmaking [12] - The competitive landscape includes established players like Tinder and Chinese platforms like Tantan, which have already integrated AI into their matching and safety features [13][15] User Engagement - Date Drop's weekly matching format creates anticipation and social engagement among users, fostering a sense of community and shared experience [5][8] - The app is not only used for dating but also as a tool for expanding social networks, which is particularly valuable in a university setting [7][8] - However, there are concerns about the app's reliance on AI for matchmaking, with some users expressing a preference for more traditional methods of meeting people [12][15]

Core Insights - Waters Corporation reported strong financial results for Q4 and full-year 2025, with significant growth in both GAAP and non-GAAP earnings per share (EPS) [1][2] - The company anticipates continued momentum into 2026, driven by instrument replacement cycles and innovative product offerings [1][2] Financial Performance Fourth Quarter 2025 - GAAP EPS was $3.77, while non-GAAP EPS increased by 10% to $4.53 [1] - Sales reached $932 million, a 7% increase as reported and 6% in constant currency compared to Q4 2024 [1] - Instrument sales grew by 3%, with chemistry sales increasing by 12% in constant currency [1][2] - Recurring revenues rose by 10% as reported and 9% in constant currency [1] Full-Year 2025 - GAAP EPS for the year was $10.76, and non-GAAP EPS grew by 11% to $13.13 [1] - Total sales were $3,165 million, reflecting a 7% increase as reported and in constant currency compared to 2024 [1] - Recurring revenue grew by 8% in constant currency, with chemistry leading at 12% growth [1][2] Market Segments - Pharmaceutical sales increased by 9% for the year, while industrial sales grew by 6% [1][2] - Academic and government market sales remained flat, with a slight decrease in constant currency [1] - Geographically, sales in Asia increased by 7% as reported and 13% in constant currency, while Europe saw a 10% increase as reported and 5% in constant currency [1][2] Future Guidance Full-Year 2026 - The company expects organic constant currency revenue growth of 5.5% to 7.0% [1] - Total reported revenue is projected to be between $6.405 billion and $6.455 billion, including contributions from acquired businesses [1] - Non-GAAP EPS is anticipated to be in the range of $14.30 to $14.50, representing year-over-year growth of approximately 8.9% to 10.4% [1] First Quarter 2026 - Organic constant currency revenue growth is expected to be between 7.0% and 9.0% [1] - Total reported revenue for Q1 2026 is projected to be between $1.198 billion and $1.211 billion [1]

Key Takeaways from the Conference Call Industry Overview - The conference call covered various companies within the North American Internet sector, specifically focusing on web builders, digital advertising, eCommerce, EdTech, and online dating. Company-Specific Insights GoDaddy (GDDY) - Management is positive about GoDaddy's vibe coding strategy, focusing on current customers and web building, with cost guardrails in place [5] - The ANS marketplace was launched, but significant financial contributions are not expected until 2026 [5] - Growth drivers for A&C bookings in 2026 include Airo, P&B strategy, and seamless commerce experiences [5] - Airo is improving average order value (AOV) and retention metrics, with a focus on high lifetime value (LTV) customers [5] Wix (WIX) - Management expects approximately 25% free cash flow (FCF) margins in 2026, despite anticipated margin compression [7] - Gross margins are improving, but variability exists due to free users abandoning projects [7] - Wix is testing a new self-creator platform with more GenAI features, but price increases in 2026 are less likely [7] - Core Wix performance remains strong, but growth acceleration may be challenging [7] The Trade Desk (TTD) - Recent layoffs affected only 1% of headcount, aligning with product and engineering initiatives [8] - No expected impact from OMC and IPG consolidation; strong relationships with both companies [8] - Kokai adoption reached 85% in November, with expectations to reach 100% soon [8] Criteo (CRTO) - Management sees agentic commerce as a significant opportunity, leveraging commerce data for better ad spend efficiency [8] - Retail Media core is performing well, with good traction in auction-based display products [8] Zeta (ZETA) - OneZeta is a key growth factor for 2026, part of the Marigold acquisition strategy [9] - Athena is on track for general availability in 1Q, but management is cautious about setting high expectations [9] IAC (IAC) - Core assets are People and MGM, with management believing both are undervalued [9] - The M&A strategy will focus on digital publishing and content sites [9] eBay (EBAY) - Guidance indicates healthy US consumer spending but weak trends in Europe [10] - eBay's holiday window extends into 1Q, with a focus on collectibles [10] - Management expects to buy back 90-100% of normalized FCF in 2026 [10] Wayfair (W) - Management reiterated 4Q guidance, noting slight deterioration in industry volume levels [11] - Success in initiatives like loyalty programs and influencer marketing is driving share gains [11] - AI initiatives are expected to roll out in 2026, enhancing user experience [11] Duolingo (DUOL) - Focus remains on user growth trends, with certain features moved back in front of the paywall [12] - Management is experimenting with GenAI features to drive user engagement [14] Match Group (MTCH) - Product testing at Tinder is ongoing, with a focus on product outcomes over near-term monetization [15] - Face Check has been rolled out in the US, with revenue impact being optimized [15] Bumble (BMBL) - Management expects a peak in declines in 4Q, with initiatives aimed at improving user experience [15] - A new AI app is being tested to enhance onboarding and matching processes [15] Additional Insights - The overall sentiment across the companies indicates a cautious optimism, with many focusing on strategic initiatives to drive growth while managing costs and market challenges [5][7][8][9][10][11][12][14][15]

Core Insights - Meta Platforms (META) and Match Group (MTCH) are leveraging AI to enhance user engagement and drive revenue growth, with META reaching 3.54 billion users globally and Match operating over 45 dating brands, including Tinder [1][9] Group 1: Meta Platforms - META's integration of AI across its platforms is significantly boosting user engagement, leading to increased ad revenues, with a projected total revenue of $56 billion to $59 billion for Q4 2025, reflecting a 20.69% year-over-year growth [5][10] - The time spent on Facebook increased by 5% and 30% on Threads in Q3 2025, with Reels achieving an annual run rate exceeding $50 billion [3][9] - META's AI-powered ad tools surpassed a $60 billion run rate by the end of Q3 2025, indicating strong advertising revenue growth [4][9] - The Zacks Consensus Estimate for META's Q4 2025 earnings is $8.16 per share, showing a 1.75% increase from the previous year [10] Group 2: Match Group - Match Group is targeting an untapped market of approximately 250 million actively dating singles worldwide, which includes 220 million first-time users and 30 million lapsed users, indicating substantial growth potential [6][9] - Tinder is introducing innovative features like the AI-powered Chemistry feature to attract Gen Z users, with early adoption showing promising engagement metrics [7][9] - Match Group expects Q4 2025 revenues between $865 million and $875 million, suggesting a 1-2% year-over-year growth [8] - The consensus estimate for Match's Q4 2025 earnings remains steady at $1 per share, indicating a 21.95% increase from the previous year [11] Group 3: Stock Performance and Valuation - Over the past 12 months, META shares have appreciated by 11.3%, outperforming Match's 2.1% increase [12] - META is considered overvalued with a Value Score of C, while Match is viewed as undervalued with a Value Score of A, trading at 6.93X and 2.19X forward price/sales respectively [15] - Despite both companies holding a Zacks Rank 3 (Hold), META's extensive user base and AI initiatives provide it with a competitive edge over Match [18]

Core Insights - Waters Corporation (WAT) reported third-quarter 2025 non-GAAP earnings of $3.40 per share, exceeding the Zacks Consensus Estimate by 5.92% and reflecting a 16% year-over-year increase [1][8] - Net sales reached $800 million, surpassing the Zacks Consensus Estimate by 2.59%, with an 8% increase year-over-year on both reported and constant currency (cc) bases [1][8] Segment Performance - The Waters segment generated sales of $713.4 million, up 9% year-over-year on both reported and cc bases, while the TA segment reported sales of $86.5 million, reflecting a 2% increase [2] - In terms of product categories, Instruments sales were $341.5 million (up 6%), Services sales were $299.9 million (up 8% reported, 7% cc), and Chemistry sales were $158.5 million (up 14% reported, 13% cc) [3] - The Pharmaceutical market generated sales of $479.8 million, increasing 12% year-over-year, while Industrial sales were $235.7 million (up 3%) and Government & Academic sales were $84.4 million (up 2%) [4] Geographic Performance - Asia generated sales of $269.7 million, up 7% reported and 13% cc, while the Americas reported sales of $292.8 million (up 5%) and Europe generated $237.4 million (up 13% reported, 5% cc) [5] Operating Details - Non-GAAP selling and administrative expenses were $179.7 million, an 8.3% increase year-over-year, while research and development expenses rose to $49.9 million (up 11.7%) [6] - The adjusted operating margin was 30.3%, contracting by 50 basis points year-over-year [6] Financial Position - As of September 27, 2025, cash and cash equivalents were $459.1 million, up from $367.2 million as of June 28, with cash from operations reported at $187.3 million and free cash flow at $159.6 million [7] Future Guidance - Waters raised its 2025 guidance for cc sales growth to between 6.7% and 7.3%, with reported sales growth expected in the 6.5%-7.1% range [9] - Non-GAAP earnings guidance for 2025 is now projected to be in the range of $13.05 to $13.15 per share, indicating year-over-year growth of over 10% to 12% on a cc basis [9] - For Q4 2025, Waters expects cc sales growth between 5% and 7%, with non-GAAP earnings projected at $4.45 to $4.55 per share, reflecting year-over-year growth of over 9% to 11% [10]

Core Viewpoint - Waters Corporation reported strong second-quarter earnings, surpassing estimates and showing year-over-year growth in both earnings and revenue, indicating positive momentum leading into the next earnings release [2][9]. Financial Performance - Non-GAAP earnings for Q2 2025 were $2.95 per share, exceeding the Zacks Consensus Estimate by 0.68% and reflecting a 12% increase year-over-year [2]. - Net sales reached $771.33 million, surpassing estimates by 3.63%, with a 9% increase on a reported basis and 8% on a constant currency basis year-over-year [2]. - The adjusted operating margin was 29.1%, a slight contraction of 10 basis points year-over-year [7]. Segment Performance - The Waters segment accounted for 89.3% of net sales, generating $688.8 million, up 11% year-over-year [3]. - Instruments sales (40% of net sales) were $308.4 million, increasing 5% year-over-year, while Services (38.6% of net sales) saw sales of $297.9 million, climbing 9% [4]. - Chemistry sales (21.4% of net sales) grew 17% year-over-year to $165 million [4]. Market Breakdown - The Pharmaceutical market, representing 59.9% of net sales, generated $462 million, up 11% year-over-year [5]. - The Industrial market (30.8% of net sales) reported sales of $237.7 million, a 7.3% increase year-over-year [5]. - The Academic & Government market (9.3% of net sales) remained flat year-over-year at $71.7 million [5]. Geographic Performance - Asia accounted for 34.5% of net sales with $265.9 million, up 12% year-over-year [6]. - Sales in the Americas (36.4% of net sales) were $280.7 million, increasing 2% year-over-year [6]. - Europe (29.1% of net sales) generated $224.6 million, reflecting a 14% year-over-year increase [6]. Guidance and Outlook - For Q3 2025, Waters expects non-GAAP earnings of $3.15-$3.25 per share, indicating year-over-year growth of approximately 8% to 11% [9]. - For the full year 2025, non-GAAP earnings are anticipated to be between $12.95 and $13.05 per share, reflecting a year-over-year growth of approximately 9% to 10% [10]. - Total sales growth for 2025 is projected to be in the range of 5% to 7% [10].