What To Watch In Twitter Earnings Report

Twitter (TWTR) is scheduled to report results of its first fiscal quarter after the market close on Thursday, April 29, with a conference call scheduled for 6:00 pm ET. What to watch:

1. USER METRICS: Twitter's monetizable daily active usage, or mDAU, is a closely watched measure of its popularity and growth potential. Last quarter, the company reported global monetizable daily active usage increased 3% sequentially to 192M and 27% year-over-year, while the company's U.S. base rose 4% sequentially to 37M, an increase of 21% year-over-year.

2. AD REVENUE: In Q4, the company reported ad revenue of $1.15B, up 31% year-over-year or 30% on a constant currency basis. The company also reported total ad engagements rose 35% year-over-year and cost per engagement decreased 3% year-over year. At the time, CFO Ned Segal said, “We made significant progress on our brand and direct response products in advance of the recent relaunch of our Mobile Application Promotion offering. Advertisers are benefitting from new ad formats, stronger attribution, and improved targeting, resulting in a 31% year-over-year increase in total ad revenue and greater than 50% year-over-year growth in MAP revenue in Q4.”

3. GUIDANCE: Along with Q4 earnings, Twitter guided to Q1 revenue between $940M and $1.04B and GAAP operating income to be between a loss of $50M and breakeven. Revenue consensus which was $965.14M at the time of earnings has risen to $1.03B.

4. ACQUISITIONS: In January, social podcasting app Breaker announced it acquisition by Twitter. The company said, “Here at Breaker, we're truly passionate about audio communication and we're inspired by the ways Twitter is facilitating public conversations for people around the world.” Additionally in January, Twitter’s chief design officer Dantley Davis announced the company acquired design agency Ueno to help "accelerate the quality and execution of design and product experiences on Twitter." The company also acquired Revue, a newsletter company, in January. In a company blog post, Kayvon Beykpour, product lead, and Mike Park, VP of publisher products, said, "Twitter has acquired Revue, a service that makes it free and easy for anyone to start and publish editorial newsletters.”

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