Twitter Crashes On Revenue Miss, Terrible Guidance, Declining US Sales, Flat US Users

So much for the much anticipated “Twitter president” bounce.

With Twitter shares surging in recent days ahead of earnings, as analysts and traders expected the Trump’s chronic use of Twitter would lead to a substantial bounce in new users, moments ago Jack Dorsey’s company disappointed again after it missed revenue (with US revenue posting a 7% decline) despite posting a modest EPS beat, as monthly users came in line with expectations but failed to impress, while US user growth remained flat. Worse, the company provided EBITDA guidance that was dreadful, far below expectations, and was half of what the company generated one year prior.

Here are the details:

  • Q4 Non-GAAP EPS $0.16 vs. Exp. $0.12
  • Q4 Revenue, $717.21MM vs. Exp. $740.14MM
  • Q4 EBITDA $215MM, Exp. $182.9MM

Users grew modestly

  • Average Monthly Active Users (MAUs): Q4 319MM, Exp. 319MM, Q3 317MM
  • Mobile Monthly Active Users (MAUs): Q4 264.77MM, Q3 263.11M

However, in a disappointing indication that the company is failing to grow where it matters, US users remained flat at 67MM

Just as bad, the company’s US revenues actually posted a decline

But it was Twitter’s outlook that disappointed investors, with the company now expecting Q1 EBITDA of only $75-$95MM, far below the 191.3MM expected, and less than half what the company made in Q1 2016.

And some more charts.

* * *

As a result of yet another abysmal quarter, which already has analysts calling for an “intervention”, the stock is down nearly 10% in the premarket.

This post originally appeared on Zero Hedge

.

Leave a Reply