While overall Twitter's just released Q3 numbers [5]were more or less in line as expected, with Q3 EPS printing at just a penny, the same as expected on $361 million in revenues, $10 million higher than the $351 million consensus estimate, and even EBITDA of $68 million beating estimates of $52.8 million, the stock has tumbled by some 12% since reporting after hours.
And while the headline data appear normal, it is one of the gimmicky, non-GAAP "twitter-specific" indicators that the company came up with just to validate its growth story that appears to be the cause of the drop after hours, namely TWTR's Timeline Views/MAU [6], which declined across the board, and were down in both the US and Worldwide not only Y/Y (by -6% and -7%, respectively), but also down compared to the second quarter.
[7]
Is this the end of the great non-GAAP growth story? Judging by the market cap, which just lost about $3 billion in value, the answer may be yes.
[8]
Mark Mahaney seems to think its all ok from here...
[9]
