Twitter Inc (TWTR) Stock Crashes After Earnings Report

Twitter Inc (TWTR) Stock Crashes After Earnings Report
<a href="">geralt</a> / Pixabay

Twitter Inc (NYSE:TWTR) released the results from its most recently completed quarter, hitting break-even on a non-GAAP earnings per share basis and posting losses of 23 cents per share on a GAAP basis. Revenue grew 119% year over year to $250 million for the first quarter. On average, analysts had been expecting the micro-blogging company to post losses of 3 cents per share on $4.23 billion in revenue for the quarter.

Twitter investors focus on users

Perhaps the more important number is the number of monthly active users, which was 255 million, a 25% increase year over year. Analysts and investors have been especially focused on user growth, which was Twitter’s weakest area in the last earnings report.

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The company reported 198 million mobile monthly active users, a 31% increase. Mobile users made up 78% of total users. Twitter Inc (NYSE:TWTR) reported 157 billion timeline views, a 15% increase, and $1.44 in advertising revenue per thousand timeline views. That’s a 96% increase year over year.

Breaking down Twitter’s results

Of Twitter Inc (NYSE:TWTR)’s total revenue, advertising revenue rose 125% to $226 million. Mobile advertising revenue made up about 80% of that amount. The company reported $24 million in data licensing and other revenue, a 76% increase. International revenue increased 183% to $70 million and made up 28% of the company’s total revenue.

Twitter Inc (NYSE:TWTR)’s GAAP net loss widened year over year from $27 million last year to $132 million this year. That included $126 million in stock-based compensation. The company reported $37 million in adjusted EBITDA, compared to $12 million in the same quarter a year ago.

Twitter provides guidance

Twitter Inc (NYSE:TWTR) projected revenue to be between $270 million and $280 million for current quarter. The company estimates that adjusted EBITDA will be between $25 million and $30 million and that stock-based compensation expenses will be between $170 million and $180 million, excluding equity awards which could be granted as part of future acquisitions.

For the full year, Twitter Inc (NYSE:TWTR) projects revenue of between $1.2 billion and $1.25 billion and adjusted EBITDA of between $180 million and $205 million. The company expects to spend between $330 million and $390 million on capital expenditures and between $640 million and $690 million on stock-based compensation, excluding equity awards that are part of future acquisitions.

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