Free Research Report as Twitter’s Adjusted EPS Advanced 11.11% and Notched Its Fourth Consecutive Quarter of Double-Digit DAU Growth

Stock Monitor: Match Group Post Earnings Reporting

LONDON, UK / ACCESSWIRE / November 30, 2017 / Active-Investors free earnings report on Twitter, Inc. (NYSE: TWTR) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=TWTR. The Company reported its third quarter fiscal 2017 operating results on October 26, 2017. The Microblogging Company reported GAAP operating profit for the first time and surpassed top- and bottom-line expectations. Register today and get free access to our complimentary member’s area where many more reports are available:

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Active-Investors.com is currently working on the research report for Match Group, Inc. (NASDAQ: MTCH), which also belongs to the Technology sector as the Company Twitter. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Twitter most recent news is on our radar and we have decided to include it on our blog post. Today’s free coverage is available at:

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Earnings Highlights and Summary

For Q3 2017, Twitter’s revenue totaled $589.63 million, reflecting a drop of 4% compared to $615.93 million in Q3 2016. The Company’s revenue numbers topped analysts’ estimates of $586.22 million.

For Q3 2017, Twitter’s Advertising segment’s revenue totaled $503 million, down 8% on a y-o-y basis. The Company’s Data Licensing and Other segment’s revenue surged 22% to $87 million on a y-o-y basis in the reported quarter. Twitter’s US revenue totaled $332 million for Q3 2017, reflecting a drop of 11% on a y-o-y basis, while its International revenue grew 6% to $258 million on a y-o-y basis.

Twitter’s GAAP operating income was $7 million in Q3 2017 compared to an operating loss of $78 million in Q3 2016. The reported quarter marked the Company’s first quarter with positive operating income on a GAAP basis.

Twitter’s adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $207 million, or 35% of total revenue, compared to $181 million, or 29% of total revenue, in Q3 2016. The Company significantly outperformed its guidance ranges of $130 million to $150 million of adjusted EBITDA, and 25% to 26% of adjusted EBITDA margins, due to better-than-expected revenue and a shift in timing of certain expenses from Q3 to Q4.

Twitter’s GAAP net loss was $21 million in Q3 2017, representing a GAAP net margin of negative 4% and a GAAP diluted earnings per share (EPS) of negative $0.03 compared to a quarterly GAAP net loss of $103 million, representing a GAAP net margin of negative 17%, and a GAAP diluted EPS of $0.15 in Q3 2016.

For Q3 2017, Twitter’s non-GAAP net income was $78 million, or $0.10 per diluted share, compared to a non-GAAP net income of $61 million, or $0.09 per diluted share, in the same period of last year. The Company’s earnings beat Wall Street’s expectations of $0.07 per share.

Operating Results

During Q3 2017, Twitter’s Average Monthly Active Users (MAU) were 330 million, up 4% compared to 317 million in Q3 2016, and compared to 326 million in the previous quarter. The Company’s Average US MAUs were 69 million in the reported quarter, reflecting an increase of 4% on a y-o-y basis compared to 68 million in the previous quarter. Twitter’s Average International MAUs were 261 million for the reported quarter, representing a growth of 4% versus the year ago comparable period.

During Q3 2017, Twitter’s Daily Active Users (DAU) grew 14% on a y-o-y basis, representing an increase from the 12% y-o-y growth in the previous quarter and marking the fourth consecutive quarter of double-digit growth.

Twitter’s total ad engagements surged 99% on a y-o-y basis, driven by a continuing mix shift toward video ad impressions as well as higher CTR rates across all ad formats on a like-for-like basis. The Company’s average cost per engagement (CPE) decline was relatively stable to Q2, at 54% y-o-y, reflecting a higher mix of video ad engagements and lower CPEs across the majority of ad formats compared to the prior year.

Twitter’s growth in both audience and engagement was driven by a combination of organic growth, marketing, and product, including the ongoing benefits of improved relevance in email, push notifications, and the timeline.

Cash Matters

Twitter ended Q3 2017 with $4.3 billion in cash, cash equivalents, and marketable securities. The Company’s GAAP net cash provided by operating activities was $240 million in the reported period compared to $189 million in the previous year. Twitter’s adjusted free cash flow was $176 million for Q3 2017 compared to $80 million in Q3 2016.

Outlook

For Q4 2017, Twitter is forecasting adjusted EBITDA to be between $220 million and $240 million, and adjusted EBITDA margin to be between 35% and 36%. The Company expects capital expenditure to be no more than $110 million.

Stock Performance Snapshot

November 29, 2017 – At Wednesday’s closing bell, Twitter’s stock fell 4.76%, ending the trading session at $20.79.

Volume traded for the day: 23.59 million shares, which was above the 3-month average volume of 16.46 million shares.

Stock performance in the last three-month – up 22.80%; previous six-month period – up 12.20%; past twelve-month period – up 14.29%; and year-to-date – up 27.55%

After yesterday’s close, Twitter’s market cap was at $15.34 billion.

The stock is part of the Technology sector, categorized under the Internet Information Providers industry.

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