Twitter boasts its largest quarterly increase in monetizable daily active users in Q4

on Feb 7, 2020
Updated: Mar 11, 2020
  • Twitter boasts its largest quarterly increase in monetizable daily active users in Q4.
  • Twitter beats analysts' estimate for revenue but misses on the earnings front in Q4.
  • Twitter has gained 20% in the stock market in 2020 so far.

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Twitter revealed its quarterly performance results on Thursday. While the American microblogging and social networking services missed the analysts’ estimate for earnings in the recent quarter, the largest quarterly growth in its userbase turned out to be sufficient to push the stock up by 15% later in the day. Twitter’s market capitalization after the release of the earnings report is $29.8 billion.

According to Refinitiv, analysts had expected the social network to note $996.7 million in revenue in the fourth quarter. In terms of earnings per share (EPS), experts had forecast 29 cents in the recent quarter. In its report on Thursday, Twitter announced a better than expected $1.01 billion in revenue in the fourth quarter but missed on the earnings front with a relatively lower 25 cents of earnings per share.

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Monetizable Daily Active Users Grew By 21% In The Fourth Quarter

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FactSet had also anticipated the company’s monetizable daily active users to print at 147.5 million versus a much higher 152 million as highlighted in Twitter’s quarterly earnings report on Thursday. The growth in daily active users, as per Twitter, is the fastest (21%) ever recorded in a quarter.

Following the earnings report, Twitter also announced guidance for the fiscal first quarter of 2020. The company accentuated that it now expects $825 million to $885 million in revenue in the first quarter. Analysts’ estimate for Q1 is currently at $873 million.

In terms of expenditures, Twitter estimated stock-based compensation at $425 million to $475 million in fiscal 2020. Capital expenditures, on the other hand, were forecast at $775 million to $825 million. The American social network also announced its plans of establishing a new data center that is expected to see a 20% increase in the company’s headcount in 2020. At the end of 2019, Twitter had 4,800 employees in total.

Twitter’s Performance In The Stock Market

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Twitter’s performance in the stock market has remained upbeat in 2020 so far. At the time of writing, the stock is exchanging hands at around $38 per share that marks an almost 20% gain in the stock market.

On the other hand, the social network performed fairly well in the first 8 months of 2019. Having opened at around $29 in the stock market in January, share prices were seen as high as around $45 by the end of August 2019. The next few months, however, were troublesome for the company as its stock dropped back to the opening level in November.

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