There isn’t any other way to describe this quarter other than a solid beat. Clearly, the expectations were very grim and the company was able to deliver a better quarter. However, US sales only rose by 1%. Think about that for a second.
Has Twitter ever been more relevant and active than now? World tensions are on the rise. The elections and the Wikileaks are keeping people glued to Twitter, in order to get the news first. Having said all that, the best Jack and his band of morons could do is a 1% earnings beat?
To be honest, in spite of the best, I view these numbers in the worst way possible. They’ve failed to cash in on a watershed moment in American politics.
On top of that, they’ve culling 9% of the work force.
Dreary.
Reports Q3 (Sep) earnings of $0.13 per share, $0.04 better than the Capital IQ Consensus of $0.09; revenues rose 8.3% year/year to $616 mln vs the $605.5 mln Capital IQ Consensus.
Q3 adjusted EBITDA of $181 million, up 28% year-over-year, representing an adjusted EBITDA margin of 29% (Guidance was $135-150 mln)
Revenue Breakdown
Advertising revenue totaled $545 million, an increase of 6% y/y.
Mobile advertising revenue was 90% of total advertising revenue.
Data licensing and other revenue totaled $71 million, an increase of 26% y/y.
U.S. revenue totaled $374 million, an increase of 1% y/y
International revenue totaled $242 million, an increase of 21% y/yUser Metrics
Total ad engagements were up 91% y/y
Cost per engagement (CPE) was down 44% y/y
Average monthly active users (MAUs) were 317 million for Q3, up 3% year-over-year and compared to 313 million in the previous quarter.Average U.S. MAUs were 67 million for Q3, up 1% year-over-year and compared to 66 million in the previous quarter.
Average international MAUs were 250 million for Q3, up 4% year-over-year and compared to 247 million in the previous quarter.
Mobile MAUs represented 83% of total MAUs.Average daily active usage (DAU) grew 7% year-over-year, an acceleration from 5% in Q2 and 3% in Q1.
FY16Adjusted EBITDA to be in the range of $700 to $715 million
Adjusted EBITDA margin on GAAP revenue to be 27.5% to 28% (Prior 26-27%);Capital expenditures to be no more than $360 million (Prior $300-375 mln)
Q4Stock-based compensation expense to be in the range of $150 to $160 million;
GAAP share count to be in the range of 715 to 720 million shares;
Non-GAAP share count to be in the range of 725 to 735 million shares.
Sell the news.
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Weibo’s market caps is around 10 billion and they have their spending under control. Cutting costs makes sense. Long and Strong.
The difference between the two are startling
You can’t successfully run two large organizations, regardless of what@jack ass says
Interesting and possibly vexing proportion of US vs International in revenue and in MAUs. Around 60% of revenue is US based but US MAUs are just over 20%. One of my takeaways is that American advertisers are spending the dollars but it’s not reaching enough of their domestic market. Now granted, the US population is about 4-5% of the world’s population. But still, if I’m an American company who focuses solely on my domestic market (not a multinational) this would be very concerning to me.