Twitter Jumps After Quarterly Report As User Base Surpasses 192M

Shares of Twitter (TWTR) are on the rise on Wednesday after the company reported fourth-quarter results, beating both earnings and revenue expectations. The microblogging platform also said that its total monetizable daily active Twitter users grew by 5M from the third quarter to 192M. Following the news, several Wall Street analysts raised their price targets on the stock, with Goldman Sachs analyst Heath Terry saying he believes that the acceleration in growth will continue and his peer at JPMorgan adding that the upcoming February 25 analyst day could be an additional catalyst for shares.

RESULTS: Twitter reported fourth-quarter adjusted earnings per share of 38c and revenue of $1.29B, both better than estimates of 31c and $1.19B, respectively. The company also said that average mDAU was 192M for the quarter, compared to 152M in the same period of the previous year and compared to 187M in the third quarter. Average U.S. mDAU was 37M for the fourth quarter, compared to 31M in the same period of the previous year and compared to 36M in the previous quarter. Average international mDAU was 155M for the fourth quarter, compared to 121M in the same period of the previous year and compared to 152M in the previous quarter.

For the first quarter, Twitter sees revenue between $940M-$1.04B and expects GAAP operating income to be between a loss of $50M and break even. For fiscal year 2021, the company expects stock-based compensation expense to be between $525M-$575M and capital expenditures to be between $900M-$950M. "As we enter 2021, our objectives are similar to previous years and our success will best be measured by our ability to grow our audience and deliver financial results in line with our guidance. We expect to grow headcount by more than 20% in 2021, especially in engineering, product, design, and research," Twitter added.

On January 8, the company announced its decision to suspend President Donald Trump's account. In an interview with CNBC Squawk Box's Becky Quick on Wednesday, Twitter CFO Ned Segal said Trump's ban from the platform is a permanent one, even if he decides to seek public office again.

1 2 3
View single page >> |

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.