Twitter Inc (TWTR) Skyrockets On Huge Earnings, MAUs Beats

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Twitter Inc (NYSE:TWTR) released the earnings results from its most recently completed quarter, posting non-GAAP earnings of 2 cents per share on $312 million in revenue, a 124% year over year increase. Analyst had been expecting a non-GAAP loss of 1 cent per share on $282.44 million in revenue.

The company posted net losses of $145 million and GAAP losses per share of 24 cents. Adjusted EBITDA was $54 million, a 461% increase, while adjusted EBITDA margin was 17%.

Twitter Inc (NYSE:TWTR) beats MAU estimates

Twitter came out ahead of estimates on average monthly active users, locking in 271 million, a 24% year over year increase. That compares to estimates of 265 million monthly active users at the end of June. The micro-blogging company reported 211 million mobile monthly active users in the second quarter, a 29% year over year increase. Mobile users made up 78% of total monthly active users. Timeline views hit 173 billion in the second quarter, a 15% increase. Advertising per thousand Timeline views was $1.60, a 100% increase.

The company reported $277 million in advertising revenue, a 129% increase. Mobile ad revenue made up 81% of total ad revenue. Data licensing and other revenue was $35 million, a 90% increase. International revenue was $102 million, a 168% increase. International revenue made up 33% of Twitter’s total revenue.

Twitter said its $145 million GAAP net loss compares to last year’s $42 million GAAP loss in the same quarter. This year’s loss included $158 million in stock-based compensation expenses.

Twitter Inc (NYSE:TWTR) updates new products

During the second quarter, Twitter introduced some new products in connection with the World Cup, like real-time scoring, push notifications, timelines for events and matches and a voting ballot feature. The company also launched new web profiles and added a private messaging capability to Vine.

The company also launched some new advertiser tools, like mobile app promotions and website cards. In addition, it continued to expand its advertising products internationally, adding more geo-targeting in more countries, including the U.K., Indonesia, France and others. Twitter launched its self-service ad platform in Spain, South Africa and Israel.

Twitter also announced that it closed the acquisition of social data provider Gnip. The company also agreed to acquire “several other companies,” including mobile targeting and re-engagement advertising company TapCommerce and video editing and distribution platform SnappyTV.

Twitter guides for third quarter

For the next quarter, Twitter expects revenue to be between $330 million and $340 million. The company projects adjusted EBITDA of between $40 million and $45 million and stock-based compensation expenses of between $180 million and $190 million, excluding awards connected to possible future acquisitions.

The company also revised its outlook for the full year, projecting revenue of between $1.31 billion and $1.33 billion. Twitter expects adjusted EBITDA for the full year to be between $210 million and $230 million and capital expenditures to be between $330 million and $390 million. The company projects stock-based compensation expenses of between $640 million and $690 million for the full year.

UPDATE: 5:42 PM EST July 29th – Victory Anthony of Topeka Capital Markets in a note to clients released on July 29 2014 states:

Twitter delivered an impressive quarter with MAUs that were above our Street high estimate and meaningfully above the bear case number (260mm). Advertising growth accelerated for the second consecutive quarter and Adj. EBITDA was 54% above our estimate and 65% above the consensus. Adj. EPS was above our estimate and the consensus. Full year revenue and EBITDA guidance was raised and is above consensus. This is a classic beat and raise that should renew investor enthusiasm for the stock. We remain buyers.

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