Twitter (TWTR) Misses Q3 EPS by 3c, Q4 Guidance Misses

Twitter (NYSE: TWTR) reported Q3 EPS of $0.17, $0.03 worse than the analyst estimate of $0.20. Revenue for the quarter came in at $824 million versus the consensus estimate of $873.91 million.

• Average monetizable daily active usage (mDAU) was 145 million, compared to 124 million in the same period of the previous year and compared to 139 million in the previous quarter.
• Average US mDAU was 30 million, compared to 26 million in the same period of the previous year and compared to 29 million in the previous quarter.
• Average international mDAU was 115 million, compared to 98 million in the same period of the previous year and compared to 110 million in the previous quarter.

GUIDANCE:

Twitter sees Q4 2019 revenue of $940-1010 million vs $1060 million expected.

• Our guidance for Q4, as in prior quarters, reflects the most likely range of outcomes based on our current visibility. We have considered the rebound in our advertising business in September, the strength of our bookings, and the organic events and product and service launches expected in Q4, along with the lingering headwinds we expect from the previously discussed revenue product issues we experienced in Q3. While we are taking steps to remediate these issues, we expect them to continue to weigh on the overall performance of our advertising business in the near term.
• Specifically, we expect that, on a combined basis, moderated performance in our Mobile Application Promotion (MAP) product and the previously discussed issues in our personalization and data settings will likely result in 4 or more points of reduced year-over-year growth for total revenue in Q4, up from 3 or more points of impact in the third quarter. The increase reflects a full-quarter impact in Q4 vs. only a partial-quarter impact in Q3. These headwinds are incorporated in our outlook.
• For Q4, we expect:
• Total revenue to be between $940 million and $1.01 billion
• Operating income to be between $130 million and $170 million
• For FY 2019, we expect:
• Capital expenditures to be at or near the low end of our previous guidance range of $550 million to $600 million
• Stock-based compensation expense to be at or near the midpoint of our previous guidance range of $350 million to $400 millio

For earnings history and earnings-related data on Twitter (TWTR) click here.

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