Twitter (TWTR) Reports In-Line Q2 EPS, MAUs were 335M, Offers Outlook

(Updated - July 27, 2018 6:55 AM EDT)

Twitter (NYSE: TWTR) reported Q2 EPS of $0.17, in-line with the analyst estimate of $0.17. Revenue for the quarter came in at $710.5 million versus the consensus estimate of $696.23 million.

Average MAUs were 335 million for Q2

• Overall growth in engagement was driven by a combination of organic growth, marketing, and product improvements. DAU grew 11% year-over-year in Q2, with double-digit growth in five out of our top 10 global markets, demonstrating another quarter of broad-based growth. Average MAUs were 335 million for Q2, an increase of 9 million year-over-year and a decrease of 1 million quarter-over-quarter, reflecting impact from decisions we have made to prioritize the health of the platform, to not move to paid SMS carrier relationships in certain markets and, to a lesser extent, GDPR. In aggregate, these factors reduced MAU by more than 3 million in Q2. Average US MAUs were 68 million for Q2, compared to 68 million in the same period of the previous year and compared to 69 million in the previous quarter. Average international MAUs were 267 million for Q2, compared to 258 million in the same period of the previous year and compared to 267 million in the previous quarter. Our DAU/MAU ratio remains well below 50%.

For Q3, we expect:

Adjusted EBITDA to be between $215 million and $235 million

Adjusted EBITDA margin to be between 33% and 34%

Stock-based compensation expense to be in the range of $85 million to $90 million

For FY 2018, we expect:

Stock-based compensation expense to be in the range of $300 million to $350 million

Capital expenditures to be between $450 million and $500 million

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

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