Twitter (TWTR) Misses Q4 EPS by 12c, Revenue Beats, Offers Guidance

Twitter (NYSE: TWTR) reported Q4 EPS of $0.17, $0.12 worse than the analyst estimate of $0.29. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $996.74 million.

Average monetizable daily active users (mDAU) were 152 million for Q4, compared to 126 million in the same period of the previous year and compared to 145 million in the previous quarter.

Average US mDAU were 31 million for Q4, compared to 27 million in the same period of the previous year and compared to 30 million in the previous quarter.
Average international mDAU were 121 million for Q4, compared to 99 million in the same period of the previous year and compared to 115 million in the previous quarter.

GUIDANCE:

Twitter sees Q1 2020 revenue of $825-885 million, versus the consensus of $872.64 million.

As we enter 2020, we are focused on four objectives to drive our work. These are similar to previous years, and our success will best be measured externally by our ability to grow our audience and deliver financial results in line with our guidance. Our company objectives are:

Increasing development velocity and trust
Increasing healthy public conversation
Increasing revenue durability
Enabling anyone, anywhere to work at Twitter

To support these objectives, we expect to grow headcount by 20% or more in 2020, especially in engineering, product, design, and research. Given investment decisions made in previous years and anticipated 2020 headcount growth, we expect total costs and expenses (which include cost of revenue and all operating expenses) to grow approximately 20% in 2020, ramping in absolute dollars over the course of the year.

Our investments also include building out a new data center in 2020 to add capacity to support audience and revenue growth. While the timing of these investments will be variable and spread out over multiple quarters, we expect capital expenditures to be weighted toward the second half of the year.

• For Q1, we expect:
• Total revenue to be between $825 million and $885 million
• Operating income to be between $0 million and $30 million
• For FY 2020, we expect:
• Stock-based compensation expense to be between $425 million and $475 million
• Capital expenditures to be between $775 million and $825 million

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

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