Twitter (TWTR) Tops Q4 EPS by 4c, Revs Miss

Twitter (NYSE: TWTR) reported Q4 EPS of $0.16, $0.04 better than the analyst estimate of $0.12. Revenue for the quarter came in at $717 million versus the consensus estimate of $740.17 million.

Average monthly active users were 319 million for the quarter, up 4% year-over-year and compared to 317 million in the previous quarter. Average daily active usage grew 11% year-over-year, an acceleration from 7% in the third quarter, 5% in the second quarter and 3% in the first quarter of 2016. Tweet impressions and time spent on Twitter also remained strong with each increasing by double digits in the fourth quarter on a year-over-year basis.

Advertising revenue totaled $638 million, down slightly year-over-year. Mobile advertising revenue was 89% of total advertising revenue. Data licensing and other revenue totaled $79 million, an increase of 14% year-over-year. U.S. revenue totaled $440 million, a decrease of 5% year-over-year. International revenue totaled $277 million, an increase of 12% year-over-year. Total advertising engagements were up 151% year-over-yea

"2016 was a transformative year as we reset and focused on why people use Twitter: it's the fastest way to see what's happening and what everyone's talking about," said Jack Dorsey, Twitter's CEO. "We overcame the toughest challenge for any consumer service at scale by reversing declining audience trends and re-accelerating usage. As a result, in the fourth quarter, daily active usage accelerated for the third consecutive quarter, and we see this strong growth continuing. While revenue growth continues to lag audience growth, we are applying the same focused approach that drove audience growth to our revenue product portfolio, focusing on our strengths and the real-time nature of our service. This will take time, but we're moving fast to show results."

For the first quarter, Twitter expects:

• Adjusted EBITDA to be between $75 million and $95 million;
• Adjusted EBITDA margin to be between 17% and 17.5%; and
• Stock-based compensation expense to be between $125 and $135 million.

Additionally, for full year 2017, Twitter expects:

• Total non-GAAP expenses to be flat to down 5%, compared to full year 2016;
• Stock-based compensation expense to be down 15% to 20%; and
• Capital expenditures to be between $300 and $400 million.

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

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