Company name:
ADT Inc
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IPO SHARE PRICE:$14.00
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IPO DATE:January 19, 2018
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TICKER:ADT
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MAIN STOCK EXCHANGE:NYSE
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CURRENT HQ LOCATION:1501 Yamato Road Boca Raton Florida 33431
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FISCAL YEAR END:December 31
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INCORPORATION JURISDICTION:DE
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ORGANIZED AS THE FOLLOWING LEGAL TYPE:Corporation
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Investor Relations Webpage:https://investor.adt.com
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TAX RATE:USA federal corporate nominal income tax rate is 21%
Short Description
ADT Inc
Largest US security alarm provider against burglar intrusions into private homes and business premises. In addition, ADT helps detect other adverse events on the customer premises: floods, fires, smoke, carbon monoxide, emergency medical assistance. Company utilizes sensors to detect intrusion into property and adverse events.
Upon detection of intrusion, ADT system sounds alarm in the building and company call center (called monitoring centers) attempts to verify validity of the event. If validity is confirmed , ADT calls police, fire fighters or emergency medical help.
Business model: typically, 3-year subscription contract, 2-year contract in California. ADT installs equipment for a fee and controls service via its call centers as opposed to DIY and self-monitoring approach by some of its competitors. Although, ADT has DYI offering called Blue by ADT.
Competitors: Vivint, Guardian, Comcast, Brinks Home Security (Moni), at&t, Stanley Security, Johnson Controls, Convergint Technologies, Securitas Electronic Security, Frontpoint Secuirty (DIY), SimpliSafe, Apple HomeKit, Amazon Ring, Google Nest.
Income Statement
(USD in thousand)
Selected Quarter:
31-Dec
2020
2020
Revenue
Gross receipts from all its customers; some of the receipts in the form of cash (great!) while some are customers I owe you (A/Rs - not so good but reality of business!)
100%
80.2% —
Monitoring and related services
19.8% —
Installation and other revenue
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Monitoring and related services |
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1,070,415 | 1,085,422 | 1,093,564 | 1,058,181 | 1,045,957 | 1,041,379 | 1,045,677 | 1,053,974 | 4,186,987 | 4,215,896 | |
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Growth, qoq in %
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2.9%
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1.4%
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0.8%
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-3.2%
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-1.2%
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-0.4%
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0.4%
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0.8%
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-2.8%
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0.7%
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||||||||
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Growth, yoy in %
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5.2%
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6.1%
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6.2%
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1.7%
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-2.3%
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-4.1%
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-4.4%
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-0.4%
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-2.8%
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0.7%
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||||||||
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Share as % of Total Revenue
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86.1%
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84.6%
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84.1%
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81.5%
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76.4%
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78.2%
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80.5%
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80.2%
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78.8%
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80.2%
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||||||||
| Installation and other revenue | 172,645 | 198,322 | 207,006 | 240,102 | 323,795 | 290,008 | 253,247 | 260,750 | 1,127,800 | 1,043,000 | ||||||||
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Growth, qoq in %
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18.8%
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14.9%
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4.4%
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16.0%
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34.9%
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-10.4%
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-12.7%
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3.0%
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37.9%
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-7.5%
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Growth, yoy in %
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74.1%
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83.1%
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74.1%
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65.2%
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87.5%
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46.2%
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22.3%
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8.6%
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37.9%
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-7.5%
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Share as % of Total Revenue
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13.9%
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15.4%
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15.9%
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18.5%
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23.6%
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21.8%
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19.5%
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19.8%
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21.2%
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19.8%
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| Total Revenue | $1,243,060 | $1,283,744 | $1,300,570 | $1,298,283 | $1,369,752 | $1,331,387 | $1,298,924 | $1,314,724 | $5,314,787 | $5,258,896 | ||||||||
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Growth, qoq in %
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4.9%
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3.3%
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1.3%
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-0.2%
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5.5%
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-2.8%
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-2.4%
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1.2%
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3.7%
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-1.1%
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||||||||
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Growth, yoy in %
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11.3%
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13.5%
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13.3%
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9.5%
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10.2%
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3.7%
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-0.1%
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1.3%
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3.7%
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-1.1%
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Selected Quarter:
31-Dec
2020
2020
Operating expenses
Cost (labor, materials, depreciation, overhead, etc) for delivering service or manufacturing a product that business sells
98.7%
36.0% —
Depreciation and amortization
33.8% —
Selling general and administrative
28.5% —
Cost of revenue excluding depreciation and amortization
0.4% —
Merger restructuring integration and other
0.0% —
Gain or loss on sale of business
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Cost of revenue excluding depreciation and amortization
Cost of revenue excluding depreciation and amortization
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325,958 | 338,089 | 356,556 | 369,681 | 407,986 | 376,347 | 357,895 | 374,300 | 1,516,528 | 1,497,200 | ||||||||
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Growth, qoq in %
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15.0%
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3.7%
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5.5%
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3.7%
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10.4%
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-7.8%
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-4.9%
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4.6%
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9.1%
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-1.3%
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Growth, yoy in %
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31.2%
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37.3%
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35.4%
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30.4%
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25.2%
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11.3%
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0.4%
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1.2%
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9.1%
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-1.3%
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Margin as % of Total Revenue
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26.2%
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26.3%
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27.4%
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28.5%
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29.8%
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28.3%
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27.6%
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28.5%
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28.5%
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28.5%
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Selling general and administrative
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324,509 | 344,664 | 378,645 | 358,714 | 453,227 | 414,031 | 410,933 | 444,715 | 1,722,906 | 1,778,860 | ||||||||
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Growth, qoq in %
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0.1%
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6.2%
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9.9%
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-5.3%
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26.3%
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-8.6%
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-0.7%
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8.2%
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22.5%
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3.2%
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Growth, yoy in %
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6.4%
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6.9%
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28.3%
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10.6%
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39.7%
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20.1%
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8.5%
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24.0%
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22.5%
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3.2%
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Margin as % of Total Revenue
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26.1%
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26.8%
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29.1%
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27.6%
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33.1%
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31.1%
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31.6%
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33.8%
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32.4%
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33.8%
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Merger restructuring integration and other
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6,279 | 6,990 | 9,800 | 12,813 | 108,794 | 12,038 | (6,117) | 5,493 | 120,208 | 21,972 | ||||||||
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Growth, qoq in %
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222.8%
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11.3%
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40.2%
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30.7%
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749.1%
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-88.9%
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-150.8%
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189.8%
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235.0%
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-81.7%
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Growth, yoy in %
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-21.7%
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1,436.3%
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246.1%
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350.5%
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1,632.7%
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72.2%
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-162.4%
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-57.1%
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235.0%
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-81.7%
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Margin as % of Total Revenue
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0.5%
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0.5%
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0.8%
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1.0%
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7.9%
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0.9%
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-0.5%
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0.4%
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2.3%
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0.4%
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Depreciation and amortization
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495,878 | 500,864 | 505,832 | 486,508 | 489,024 | 477,869 | 473,346 | 473,528 | 1,913,767 | 1,894,112 | ||||||||
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Growth, qoq in %
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2.4%
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1.0%
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1.0%
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-3.8%
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0.5%
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-2.3%
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-0.9%
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0.0%
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-3.8%
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-1.0%
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Growth, yoy in %
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2.5%
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2.6%
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6.5%
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0.5%
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-1.4%
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-4.6%
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-6.4%
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-2.7%
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-3.8%
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-1.0%
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Margin as % of Total Revenue
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39.9%
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39.0%
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38.9%
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37.5%
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35.7%
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35.9%
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36.4%
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36.0%
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36.0%
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36.0%
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Gain or loss on sale of business
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- | - | 55,489 | 61,951 | 77 | 680 | (19) | - | 738 | - | ||||||||
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Growth, qoq in %
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-
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-
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-
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11.6%
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-99.9%
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783.1%
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-102.8%
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-100.0%
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-98.8%
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-
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Growth, yoy in %
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-
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-
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-
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-
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-
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-
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-100.0%
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-100.0%
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-98.8%
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-
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Margin as % of Total Revenue
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-
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-
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4.3%
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-
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0.0%
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0.1%
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-0.0%
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-
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0.0%
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-
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Loss on business held for sale
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- | - | 55,489 | - | - | - | - | - | - | - | ||||||||
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Growth, qoq in %
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-
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-
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-
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-
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-
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-
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-
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-
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-
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-
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Growth, yoy in %
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-
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-
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-
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-
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-
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-
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-
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-
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-
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-
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Margin as % of Total Revenue
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-
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-
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-
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-
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-
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-
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-
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-
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-
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-
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Goodwill impairment
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- | - | 45,482 | 45,482 | - | - | - | - | - | - | ||||||||
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Growth, qoq in %
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-
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-
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-
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-
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-
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-
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-
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-
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-
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-
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Growth, yoy in %
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-
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-
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-
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-48.3%
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-
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-
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-
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-
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-
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-
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Margin as % of Total Revenue
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-
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-
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3.5%
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-
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-
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-
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-
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-
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-
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-
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Total operating expenses
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1,152,624 | 1,190,607 | 1,351,804 | 1,234,178 | 1,459,108 | 1,280,965 | 1,236,038 | 1,298,036 | 5,274,147 | 5,192,144 | ||||||||
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Growth, qoq in %
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-1.9%
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3.3%
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13.5%
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-8.7%
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18.2%
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-12.2%
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-3.5%
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5.0%
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7.0%
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-1.6%
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Growth, yoy in %
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10.3%
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12.6%
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31.7%
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5.1%
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26.6%
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7.6%
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-8.6%
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5.2%
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7.0%
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-1.6%
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Margin as % of Total Revenue
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92.7%
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92.7%
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103.9%
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95.1%
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106.5%
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96.2%
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95.2%
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98.7%
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99.2%
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98.7%
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Selected Quarter:
31-Dec
2020
2020
Operating Income
Income after excluding Operating Expenses from Total Revenue
1.3%
1.3% —
Operating Income
Key metric that shows earnings potential of the company's business model
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| Operating income | $90,436 | $93,137 | ($51,234) | $64,105 | ($89,356) | $50,422 | $62,886 | $16,688 | $40,640 | $66,752 | ||||||||
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Growth, qoq in %
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746.2%
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3.0%
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-155.0%
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225.1%
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-239.4%
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156.4%
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24.7%
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-73.5%
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-79.3%
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64.3%
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Growth, yoy in %
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26.7%
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26.0%
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-142.0%
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499.8%
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-198.8%
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-45.9%
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222.7%
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-74.0%
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-79.3%
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64.3%
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Margin as % of Total Revenue
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7.3%
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7.3%
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-3.9%
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4.9%
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-6.5%
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3.8%
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4.8%
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1.3%
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0.8%
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1.3%
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Selected Quarter:
31-Dec
2020
2020
Non-operating expenses
Cost usually unrelated to delivering service or manufacturing a product that business sells
0.2%
0.1% —
Other income
0.4% —
Loss on early repayment of debt
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Other expense or income | 1,199 | - | - | - | - | - | - | - | - | - | ||||||||
| Other income | 1,199 | 1,510 | 200 | 2,103 | 2,309 | 2,271 | 1,992 | 1,721 | 8,293 | 6,884 | ||||||||
| Loss on early repayment of debt | (21,561) | (66,911) | (14,532) | (1,071) | (65,843) | - | (48,916) | (4,904) | (119,663) | (19,616) | ||||||||
| Total non-operating income (expense) | (20,362) | (65,401) | (14,332) | 1,032 | (63,534) | 2,271 | (46,924) | (3,183) | (111,370) | (12,732) | ||||||||
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Growth, qoq in %
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1,036.3%
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221.2%
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-78.1%
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107.2%
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-6,256.4%
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103.6%
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-2,166.2%
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-93.2%
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12.4%
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-88.6%
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||||||||
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Growth, yoy in %
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-67.2%
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-323.3%
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-93.3%
|
157.6%
|
212.0%
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103.5%
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227.4%
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-408.4%
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12.4%
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-88.6%
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Margin as % of Total Revenue
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-1.6%
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-5.1%
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-1.1%
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0.1%
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-4.6%
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0.2%
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-3.6%
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-0.2%
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-2.1%
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-0.2%
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Selected Quarter:
31-Dec
2020
2020
Earnings before Interest and Taxes (EBIT)
Income after excluding Operating and Non-operating Expenses from Total Revenue
1.0%
1.0% —
EBIT
Another income metric but unlike Operating Income it is closer to the ultimate income metric - Net Income by removing expenses that are not related to earning Revenue as they are supposed to be accidental and transitory
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EBIT | $70,074 | $27,736 | ($65,566) | $65,137 | ($152,890) | $52,693 | $15,962 | $13,505 | ($70,730) | $54,020 | ||||||||
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Growth, qoq in %
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687.8%
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-60.4%
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-336.4%
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199.3%
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-334.7%
|
134.5%
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-69.7%
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-15.4%
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-172.6%
|
176.4%
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||||||||
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Growth, yoy in %
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651.2%
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-73.1%
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-27.8%
|
632.3%
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-318.2%
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90.0%
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124.3%
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-79.3%
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-172.6%
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176.4%
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Margin as % of Total Revenue
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5.6%
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2.2%
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-5.0%
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5.0%
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-11.2%
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4.0%
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1.2%
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1.0%
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-1.3%
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1.0%
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Selected Quarter:
31-Dec
2020
2020
Interest Expense and Income, Taxes
Expenses driven mostly by company management's choices, nature of business (capital intensive vs not) about financing (debt vs equity) and legal structure
9.6%
1.0% —
Income tax expense or benefit
10.6% —
Interest expense
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Interest expense
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(158,905) | (154,641) | (152,431) | (153,596) | (225,367) | (187,265) | (156,759) | (138,798) | (708,189) | (555,192) | ||||||||
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Growth, qoq in %
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-1.9%
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-2.7%
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-1.4%
|
0.8%
|
46.7%
|
-16.9%
|
-16.3%
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-11.5%
|
14.3%
|
-21.6%
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||||||||
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Growth, yoy in %
|
-8.8%
|
-11.4%
|
0.0%
|
-5.2%
|
41.8%
|
21.1%
|
2.8%
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-9.6%
|
14.3%
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-21.6%
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||||||||
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Margin as % of Total Revenue
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-12.8%
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-12.0%
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-11.7%
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-11.8%
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-16.5%
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-14.1%
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-12.1%
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-10.6%
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-13.3%
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-10.6%
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Income before income taxes
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(88,831) | (126,905) | (217,997) | (88,459) | (378,257) | (134,572) | (140,797) | (125,293) | (778,919) | (501,172) | ||||||||
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Growth, qoq in %
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-42.0%
|
42.9%
|
71.8%
|
-59.4%
|
327.6%
|
-64.4%
|
4.6%
|
-11.0%
|
49.2%
|
-35.7%
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||||||||
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Growth, yoy in %
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-46.2%
|
78.0%
|
-10.4%
|
-42.2%
|
325.8%
|
6.0%
|
-35.4%
|
41.6%
|
49.2%
|
-35.7%
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||||||||
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Margin as % of Total Revenue
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-7.1%
|
-9.9%
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-16.8%
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-6.8%
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-27.6%
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-10.1%
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-10.8%
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-9.5%
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-14.7%
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-9.5%
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Income tax expense or benefit TEST - ODD
|
(22,361) | (22,848) | (36,367) | (16,466) | (77,964) | (27,831) | (27,699) | (13,232) | (146,726) | (52,928) |
Selected Quarter:
31-Dec
2020
2020
Net income (loss)
Ultimate measure of Income - Net result after excluding all expenses from Total Revenue
8.5%
8.5% —
Net income (loss)
It is a residue that is left from Total Revenue after paying all kind of expenses and belongs to all equity holders in the company. Some of these shareholders such Non-controlling interest or Preferred equity gets their share before Common shareholders
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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Net income (loss)
|
($66,470) | ($104,057) | ($181,630) | ($71,993) | ($300,293) | ($106,741) | ($113,098) | ($112,061) | ($632,193) | ($448,244) | ||||||||
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Growth, qoq in %
|
-55.5%
|
56.5%
|
74.5%
|
-60.4%
|
317.1%
|
-64.5%
|
6.0%
|
-0.9%
|
49.0%
|
-29.1%
|
||||||||
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Growth, yoy in %
|
-57.8%
|
56.0%
|
-22.9%
|
-51.8%
|
351.8%
|
2.6%
|
-37.7%
|
55.7%
|
49.0%
|
-29.1%
|
||||||||
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Margin as % of Total Revenue
|
-5.3%
|
-8.1%
|
-14.0%
|
-5.5%
|
-21.9%
|
-8.0%
|
-8.7%
|
-8.5%
|
-11.9%
|
-8.5%
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Basic Shares Outstanding
Basic shares outstanding as of certain dates reported by Company on its annual and quarterly filings, these numbers are NOT used calculation of basic EPS. They help to see share issuance by company in perspective
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Class B | - | - | - | - | - | - | 54,744,525 | 54,744,525 | 54,744,525 | 54,744,525 | ||||||||
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Growth, qoq in %
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
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||||||||
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Growth, yoy in %
|
-
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-
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-
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-
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-
|
-
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-
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-
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-
|
-
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||||||||
| Common | 756,761,959 | 739,891,705 | 743,503,116 | 759,878,819 | 760,432,495 | 760,784,454 | 761,101,931 | 762,035,537 | 762,035,537 | 762,035,537 | ||||||||
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Growth, qoq in %
|
0.02%
|
-2.23%
|
0.49%
|
2.20%
|
0.07%
|
0.05%
|
0.04%
|
0.12%
|
0.28%
|
0.28%
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||||||||
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Growth, yoy in %
|
-
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-
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-
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0.43%
|
-
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-
|
-
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0.28%
|
0.28%
|
0.28%
|
Selected Quarter:
31-Dec
2020
2020
EPS
Net Income / Shares Outstanding = EPS before dilution or Basic EPS; Net Income/ ( Shares Outstanding + potentially available shares from conversion of various option instruments)
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Income per basic share | ($0.09) | ($0.14) | ($0.25) | ($0.10) | ($0.40) | ($0.14) | ($0.15) | ($0.14) | ($0.82) | ($0.56) | ||||||||
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Growth, qoq in %
|
-52.6%
|
55.6%
|
78.6%
|
-60.0%
|
300.0%
|
-65.0%
|
7.1%
|
-6.7%
|
-
|
-
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||||||||
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Growth, yoy in %
|
-59.1%
|
55.6%
|
-19.4%
|
-47.4%
|
344.4%
|
-
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-40.0%
|
40.0%
|
43.9%
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-31.7%
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||||||||
| Net Income per basic share - Class B | - | - | - | - | - | - | $0.05 | ($0.62) | ($0.72) | ($2.48) | ||||||||
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Growth, qoq in %
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-1,340.0%
|
-
|
-
|
||||||||
|
Growth, yoy in %
|
-
|
-
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-
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-
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-
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-
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-
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-
|
-
|
244.4%
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||||||||
| Net Income per diluted share | ($0.09) | ($0.14) | ($0.25) | ($0.10) | ($0.40) | ($0.14) | ($0.15) | ($0.14) | ($0.82) | ($0.56) | ||||||||
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Growth, qoq in %
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-52.6%
|
55.6%
|
78.6%
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-60.0%
|
300.0%
|
-65.0%
|
7.1%
|
-6.7%
|
-
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-
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||||||||
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Growth, yoy in %
|
-59.1%
|
55.6%
|
-19.4%
|
-47.4%
|
344.4%
|
-
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-40.0%
|
40.0%
|
43.9%
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-31.7%
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||||||||
| Net Income per diluted share - Class B | - | - | - | - | - | - | ($0.07) | ($0.30) | ($0.74) | ($1.20) | ||||||||
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Growth, qoq in %
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
328.6%
|
-
|
-
|
||||||||
|
Growth, yoy in %
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
62.2%
|
Selected Quarter:
31-Dec
2020
2020
Dividends
Dividend is fraction of Earnings that is paid out in cash form to investor now; It's important to watch out that dividends don't exceed EPS on continuous basis as it is a sign that management is manipulating investor's perception of value of the company