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Twitter Confirms Leak: Stocks Plummets On Disastrous Results, Outlook Cut
Well, the leak (which ironically came out on Twitter only, and not Facebook) was right, and the full story is even worse than Selerity reported:
- TWITTER 1Q LOSS PER SHARE 25C
- TWITTER INC 1Q ADJ. EPS 7C , EST. 4C
That much we knew. Here is where it gets worse:
- TWITTER 1Q REV. $ 435.9M, EST. $456.2M
- TWITTER SEES 2Q REV. $470M TO $485M, EST. $538.1M
- TWTR SEES YR REV $2.170B-$2.270B, SAW $2.3B-$2.35B, EST $2.37B
Twitter, Inc. (NYSE: TWTR) today announced financial results for the quarter ended March 31, 2015, and outlined lower 2015 expectations.
- Q1 revenue of $436 million, up 74% year-over-year, slightly below the previously forecast range of $440 million to $450 million. Excluding the impact of year-over-year changes in foreign exchange rates, total revenue would have increased 80%.
- Q1 net loss of $162 million and non-GAAP net income of $47 million
- Q1 GAAP EPS of ($0.25) and non-GAAP EPS of $0.07
- Q1 adjusted EBITDA of $104 million, above the previously forecast range of $89 million to $94 million, representing an adjusted EBITDA margin of 24%
Twitter's first quarter revenues were affected by a lower-than-expected contribution from its newer direct response products. The Company expects this revenue impact to continue for the remainder of the fiscal year as outlined in the outlook section below.
"While we exceeded our EBITDA target for the first quarter, revenue growth fell slightly short of our expectations due to lower-than-expected contribution from some of our newer direct response products," said Dick Costolo, CEO of Twitter. "It is still early days for these products, and we have a strong pipeline that we believe will drive increased value for direct response advertisers in the future. We remain confident in our strategy and in Twitter's long-term opportunity, and our focus remains on creating sustainable shareholder value by executing against our three priorities: strengthening the core, reducing barriers to consumption and delivering new apps and services."
In addition, Twitter made two announcements today aimed at strengthening its direct response capabilities:
- Twitter announced that it has entered into a definitive agreement to acquire TellApart, Inc., a leading marketing technology company providing retailers and e-commerce advertisers with unique cross-device retargeting capabilities through dynamic product ads and email marketing.
- Twitter also announced a partnership with Google's DoubleClick platform to improve advertising performance measurement and attribution for Twitter direct response marketers. As part of the partnership, Twitter will also make its inventory available through the DoubleClick Bid Manager, making it easier for clients who prefer to centralize their buying through DBM to create and manage campaigns on Twitter.
Outlook
Twitter's outlook for the second quarter of 2015 is as follows:
- Revenue is projected to be in the range of $470 million to $485 million.
- Adjusted EBITDA is projected to be in the range of $97 million to $102 million.
- Stock-based compensation expense is projected to be in the range of $190 million to $200 million, excluding the impact of equity
- awards that may be granted in connection with potential future acquisitions.
Twitter's outlook for the full year of 2015 is as follows:
- Revenue is projected to be in the range of $2.170 billion to $2.270 billion.
- Adjusted EBITDA is projected to be in the range of $510 million to $535 million.
- Capital expenditures are projected to be in the range of $500 million to $650 million.
- Stock-based compensation expense is projected to be in the range of $750 million to $790 million, excluding the impact of equity awards that may be granted in connection with potential future acquisitions.
Since there is no $140 billion stock buyback to deflect from the "no growth" reality, the stock promptly crashes some 20% after reopening.
As Nanex shows, TWTR actually did the flash crash dash, sliding to $0.01 briefly.
$TWTR reopened and went to 1¢ from tripping circuit breaker. Circled trades may have occurred during halt! pic.twitter.com/ECMzpZ1Oa6
— Eric Scott Hunsader (@nanexllc) April 28, 2015
Of course, here's Cramer:
Twitter is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:
Twitter (TWTR:NYSE; $50.82; 1,400 shares; 2.69%; Sector: Technology): The shares traded higher this week following strong performance and underlying trends seen in both Facebook's (FB) and Google's (GOOGL) results. We believe Twitter is partially out of the sentiment doghouse heading into first-quarter 2015 results next week, but is still largely under-owned relative to most large-cap Internet stocks.
Twitter has likely the greatest array of company-specific catalysts of any company in its sphere this year, including Periscope, core monthly active user (MAU) acceleration from the Google partnership, and new core features like embedded video. Industry channel checks point to solid uptake of Twitter's new targeting features and formats in the first quarter, but the greatest lever the company can pull, in our view, is the pace of on-boarding of new advertiser demand. For some perspective, we estimate that Google generates half of its revenue from smaller advertisers who spend less than $250k per year, which make up 95% of the 8 million-plus AdWords accounts, so building out the "tail" should allow Twitter to grow well-above average over the next several years. With a global ad load between 1% to 2% and 85% from mobile, we think TWTR has more revenue runway than any other company in the Internet space. Our target is $55.
- Jim Cramer and Jack Mohr, 'Weekly Roundup' originally published 4/24/2015 on ActionAlertsPLUS.com.
And now perhaps someone will ask how much of Facebook's 1.4 billion "users" are actually real.
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Q: How many FB users are real
A: 0
$2 billion in revenue a year for a company that basically acts as an internet megaphone.
#facepalm
Sort of off topic. What is this hashtag thing? I have never used or followed twitter. Can you just make them up? What do they do? (besides provide me with endless hours of amusement)
I sort of pretend I know what they do but I am a Luddite on social media. We used to call social media "bars."
For those who went long Twitter:
#PuckeredSphincter
pods
#DafuqThisHashtagShit
It's just a symbol that indicates a "topic" or something "topical" so that everyone can Human CentiPad
https://www.youtube.com/watch?v=sglZGSwK6ow
Black "Jimmy Kramer" (mom's Jewish), who runs ActionJacksonAlertsPLUS, just tweeted (while sippin' on Hennessy):
#Buyin'TheDipMaNigger!
#Lil'SisYellen'sGotMyBack!
Even money that at tonight's riot a leader will emerge from the crowd and will give an eloquent speech like President Dwayne Elizondo Mountain Dew Herbert Camacho did.
pods
#3PointPlan
if you're seriously asking - a hashtag is like creating a link without the need for HTML...and yes you can make them up. look up #eastwooding (now that was some funny shit when it happened).
I just don't see how you would find something from the hashtag. Or is like for sharing? Like this tweet has this hashtag and all you have to do is send that hashtag to someone and it takes them to the link?
What about duplicates?
Like i said, I am a Luddite when it comes to that, and yes, I was serious.
Thanks!
pods
you just hashtag something by tweeting something and putting # in front of a word or phrase (no spaces). #twittersucks, #zerohedge, #hillaryforprez, #ilovetacos, etc......
you can search a hashtag by seeing what's trending on twitter (there is a search function)...or if you see a tweet that has a hashtag in it and you want to see what else has been tweeted with that hasthag, just click on it as it will show up like a hypertext link.
when clint eastwood was giving his speech to a chair, people were posting tweets in realtime w/ pictures of their dogs staring at a chair, or pointing their finger at a chair, etc... and would add the hashtag #eastwooding - so you could just click on #eastwooding and see all the funny as balls stuff people were sharing. it was actually a point in time when i finally appreciated twitter (and realized that a lot of people are as cynical as i am - there are some really funny people out there). much the same as some of the funniest/cynical things i've ever read are the comments here on ZH.
it's like commenting on zerhedge or any other blog - but a lot faster...and you can only comment 140 characters at time
there is some really cool stuff on twitter - you just have to follow the right people. i actually found ZH thru twitter.
There are over 2000 publicly traded companies in the world with revenues of more than $1 billion. Most don't have DIV/0 EPS or P/E ratio.
Since I started freelancing I've been bringing in $90 bucks/h… I sit at home and i am doing my work from my laptop. Th? best thing is that i get more time to spent with my family and with my kids and in the same time i can earn enough to support them... You can do it too. Start here... www.globe-report.com
So why is this a disaster...EPS beat, Rev down a small bit, User count inline....
What is the problem here?
Wall street likes to club companies that lower outlook for the coming quarter. I'm sure this dip like all others will be bought.
no problem if you're a short seller!
So is their CIA funding put in a bucket other than "revenue"?
435M in revenue and they have a loss....What the fuck are they spending their money on? Is there a huge hole in the parking lo that they shovel it into.
You'd be surprised. In San Francisco, real estate with enough privacy to permit enjoyment of hookers and blow isn't cheap.
Neither are bug-outs in Switzerland and Singapore.
"$1 for us. $42 for the CIA. $1 for us..."
Liberty is a demand. Tyranny is submission.
Twitter has revenue?
BONUS TIME! WOOT! WOOT!
"I smell PR-stunt poontang."
Liberty is a demand. Tyranny is submission.
kelly evans: "dennis gartman just tweeting in he's trying to buy 2000 shares"
lol
BLOCK DESK!!!
get a borrow on a million :)
I really hate that ... twat
of all the whores on CNBS in the last 20 years she might be the most dumb and annoying, besides Lies-man of course
squid - seems like all the combination of smart/hot ones they have leave: melissa francis, that italian chick who did the early shift (she may not have been too smart, but she was so f'n hot, i wudda believed anything that came out of her mouth).
ill guarantee CNBC runs a 2-hour special tonite "the human touch: why the NYSE trading floor still needs people" based on this TWTR deal today.
PREDICTION: TWTR rolls-over in the AH, gartman on fast $ says he bot it at 38.5 and sold it at 44.5. they should make these guys provide trade confirms before they go on air.
Only feeble-minded persons use so-called "social media".
umm...you happen to be contributing to one of the channels of 'social media' called a BLOG. so are you calling yourself feeble-minded? or did you simply forget the /sarc tag?
Balti Moar!
How much does Twitter value the black Twitter users per head? Less than white users? Any revenue from those users who use Twitter to start riots?
Yea kind of jacked me as I was hunting uvxy hoping I could get it down in the 9.60's.... So I had to jump in at 9.84 instead.
Hey maybe it will go lower and I can get me some more.....
At 2600 now!
Whalefailest Since LehmanTM
The demise of social media cannot come quickly enough.
Twatter.
And why linkedin and facebook?
lemme guess... kike CEO says they are spending on the future... ?
Periscope will turn around TWTRs fortunes, just like Twitter Music and Vine.
Can't wait for the Snapchat IPO.
While twitter and snapchat are just silly and exist to be loss making tools for larger tech businesses in the long run, linkedin and fb I believe have reached 'escape velocity'.
That doesn't mean both wont face massive corrections (3x-5x lower) but both, IMO, are viable stand-alone businesses.
Down 17%, money will soon be rushing in off the sidelines. Its a bargain. BTFD
Hashtag @ smoke some more hash...whoever was/is owning this stawk
The more advertising and the more data mining these sites/apps do -- the more users will stop using them. Hear that Tylers???
Use download Disconnect to block datamining.
Q99X2 confirms leak: BTFD its FED software stupid.
Anyone who uses their real name and date on FB or Twatter is a fool.
Twitter disappoints every single quarter, yet people continue to buy this stock. At least Facebook somehow is making and increasing their actual cash flow. Not that I would own either of these stocks.
Like I’ve said before, the only thing dumber than an HFT algo that thinks it can buy a $40 stock for $0.01 is one that actually manages to buy a $40 stock for $0.01, then turns around and sells it for $0.02 cents.
Meanwhile, I sense there are a lot of Angry Birds out there tonight.
jim Cramer is an ass clown
jim Cramer is an ass clown
The general dislike towards social media platforms on ZH is sort of fascinating. ZH has taken the lead, so perhaps it is only natural that some of its followers, follow. However, it seems to me that quite a few of the commentators who seem to share the same negative opinions often have no clue as to what the fuck they are talking about.