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Twitter ‘Crushes’ Estimates, Books 7.8% Decrease in Revenues, Year Over Year

@Jack finally did it. He posted a better than expected quarter at Twitter, locking in a 13% decrease in revenues — which was less than expected. Overall, if judging Twitter as a business and not an arcade game of earnings surprises, the business is an abomination.

Ad revenues, sharply lower — in spite of the fact that ad engagements were sharply higher.

MAU’s increased 7%, thanks to all of the fake news disseminated by all their fake users.

Reports Q1 (Mar) earnings of $0.11 per share, $0.10 better than the Capital IQ Consensus of $0.01; revenues fell 7.8% year/year to $548 mln vs the $513.04 mln Capital IQ Consensus.

Advertising revenue totaled $474 million, a decrease of 11% year-over-year.
Data licensing and other revenue totaled $74 million, an increase of 17% year-over-year.
US revenue totaled $341 million, a decrease of 13% year-over-year.
International revenue totaled $208 million, an increase of 2% year-over-year.
Total ad engagements increased 139% year-over-year.
Cost per engagement (CPE) decreased 63% year-over-year.
Q1 GAAP expenses totaled $589 million, a decrease of 10% year-over-year.

Q1 adjusted EBITDA of $170 million, a decrease of 6% year-over-year, representing an adjusted EBITDA margin of 31%.
Average monthly active users were 328 million in Q1 (Street Expectations were 322mln), an increase of 6% year-over-year and compared to 319 million in the previous quarter.

Average US MAUs were 70 million in Q1, an increase of 7% year-over-year and compared to 67 million in the previous quarter.
Average international MAUs were 259 million in Q1, an increase of 6% year-over-year and compared to 252 million in the previous quarter.
DAU grew 14% year-over-year, an acceleration from 11% in Q4’16, 7% in Q3’16, 5% in Q2’16, and 3% in Q1’16.

Outlook

Q2
Adjusted EBITDA to be between $95 million and $115 million
Adjusted EBITDA margin to be between 21% and 21.5%
SBC to be between $115 million and $125 million
FY 2017

Total non-GAAP expenses to be flat to down 5%, compared to full year 2016
SBC to be down 20% to 25%, compared to full year 2016
Capital expenditures to be between $300 million and $400 million

Shares are sharply higher in the pre-market over this glorious report.

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6 comments

  1. sarcrilege

    glorious report:
    – revenues fell 7.8% year/year to $548 mln
    – Advertising revenue totaled $474 million, a decrease of 11%
    – EBITDA of $170 million, a decrease of 6%
    THEREFORE:
    Shares are sharply higher

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  2. henceforth

    About time they decided to slash their stock based comp.

    Stock might actually be a decent value here, but I’m not really interested enough to run the numbers.

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  3. bushwacker2

    TWTR is a useful app. Fundamentally, the company sucks. Technically, sentiment was overly pessimistic. Ergo, beating expectations is a positive if you’re speculating on it. Makes sense to me why it’s up—for now.

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    • sarcrilege

      Really? Beating expectations?
      Non-GAAP beat is another term for ‘cooking books’ to parade fake earnings

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  4. mx2101

    TWTR is a useful app for Donald Trump, wouldn’t you say? Yet it is apparently not a going concern, struggling with monetizing its audience and users. How can something that was/is a powerful communication and marketing tool be unable to make a profit? There’s an essay or op-ed piece in there, has anyone seen it?

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