Moments ago Twitter just reported blockbuster earnings that beat expectations across the board, and guided higher:
- Q4 revenue of $243 million, up 116% year-over-year, beating estimates of $218 million
- Q4 GAAP EPS of ($1.41) and non-GAAP EPS of $0.02, beating estimates of ($0.02)
- Q4 net loss of $511 million and non-GAAP net income of $10 million
- Q4 adjusted EBITDA of $45 million, representing an adjusted EBITDA margin of 18%
- Sees Q1 revenue of $230-$240 million, higher than the consensus estimate of $214.9 million
In other words everything was great, with TWTR beating everything and the stock should be soaring right?
Well, it was for a few minutes.... Until the algos read the following chart from the earnings slidedeck [6]:
[7]
Yup: just 1 million monthly active users added in the US in 1 quarter and just 9 million in the entire world added in the quarter, far less than 15 milion additions expected (to a total 247MM).
And as an added bonus, this chart of timeline views, which reported the first quarterly contraction, certainly did not help either.
[8]
Finally, the trend is certainly not the momo-chasers friend here either:
[9]
As a result, this is what happened with TWTR stock after hours:
[10]