Twitter Q4 beats on sales of $909M and EPS of $0.33, but MAUs slump to just 321M

TechCrunch | 2/7/2019 | Staff
Emzah92 (Posted by) Level 3
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After strong results from Facebook and Snap this quarter, all eyes were on Twitter to see if the other big, publicly listed social network could deliver a hat trick of growth. If we judged the company on financials alone, the company did not disappoint, with revenues coming in at $909 million and diluted earnings per share of $0.33 with a net income of $244 million. On average, analysts had been expecting revenues of $859.5 million on an EPS of $0.25.

However, user growth has now slumped to at 321 million monthly active users, falling short even of estimates that were expecting a decline.

Advertising - Revenues - Percent - Company - Revenues

Advertising revenues were $791 million, accounting for 87 percent of the company’s revenues. “Monetizeable daily active users” are now at 126 million up from 124 million in the previous quarter.

Shares are equally slumping in pre-market trading, down more than seven percent so far.

Growth - Context - Twitter - Issues - Growth

To put user growth into some context, Twitter has long-standing issues with user growth that even predate the company going public, and many quarters (such as last quarter, when it also beat estimates on revenues of $758 million and earnings per share of 21 cents; and a year ago, when it also crushed ) user numbers, specifically monthly active users, remained flat or even shrunk.

Some of Twitter’s challenges on the user-number front have included the fact that despite its almost addictive popularity with some people, a strong showing from very high profile figures “speaking to the people” on Twitter, and the fact that it’s become a go-to for the media both to source news as well as broadcast — the real-time aspect of the feed lends itself well to...
(Excerpt) Read more at: TechCrunch
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