Twitter Reports Weaker Guidance in Fourth Quarter Financials

Twitter, Inc. (NYSE: TWTR) reported its fourth quarter financial results on Thursday. The social media giant topped estimates for both earnings and revenue, however, Twitter provided weaker-than-expected guidance, causing shares to tumble by 10% shortly after Thursday’s opening bell.

For the fourth quarter, Twitter reported earnings of USD 31 cents per share on revenue of USD 909 Million. Refinitiv analysts expected earnings of USD 25 cents per share on revenue of USD 878.1 Million.

The Company reported that advertising revenue increased by 23% year-over-year to USD 791 Million, driven by a 33% increase in ad engagements. Data licensing and other revenue totaled USD 117 Million, jumping by 35% year-over-year.

Twitter witnessed similar growth in both its international and U.S. markets. Both regions increased by 24% year-over-year.

The Company reported that average monthly active users fell to 321 million for the quarter, compared to 330 million the same quarter last year. Twitter saw its monthly users decline in both the U.S. and internationally.

Average monetizable daily active users for the quarter were 126 million compared to 115 million a year ago. The U.S. reported 27 million mDAUs while international mDAUs were 99 million.

Twitter noted in its earnings release that it wanted to change how it reports its user metrics. The Company wants to be comparable to other companies who also report metrics. Twitter says it wants to report the number of people using Twitter everyday and the monetizing usage.

As a result, Twitter said starting within the quarter, it says it will start sharing the absolute number of monetizable daily active users, which was previously referred to as daily active users.

For the next quarter, Twitter forecasts revenue between USD 715 Million to USD 775 Million. Analysts are expecting revenue of USD 764.9 Million. As for the full year, Twitter expects its operating expenses to increase by 20% year-over-year.

4 Comments
  1. Paul C. 9 months ago
    Reply

    Bought some $30 2/15 calls of $TWTR after 11% over reaction selloff. Should be able to profit off the panic. Not a long hold by any means but when others sell I buy. See December 😉 #StockMarket

    • Sheldon Chang 9 months ago
      Reply

      $TWTR’s reported DAU num of 126mm is STRANGE. -In 2015 Q2 it tweeted DAU/MAU=44%, w MAU=304mm then => DAU=134 -It reported the following growth rates. Using the Q2 rates, DAU should be 175mm by the end of Q2 2018!

  2. Rich Greenfield 9 months ago
    Reply

    Who is selling into today’s $TWTR weakness?

    • Anthony Nici 9 months ago
      Reply

      I think folks are nervous about the 126m mDAU number. Through Q4 and frankly all of 2018 revenue was stellar and growing. The product feels cleaner (less spam, less toxicity, more relevance) and far easier to use. Their AI/ML models are better, pushing more engagement. $TWTR

Leave a Comment