What To Expect From Twitter’s Q1 Results
Twitter (NYSE:TWTR) is scheduled to report its Q1 2016 earnings on Tuesday, April 26. Twitter’s struggle to grow its active user base was the primary investor concern through 2015, and that is unlikely to change this year. In the previous quarter, Twitter’s average Monthly Active Users (excluding SMS Fast Followers) declined by 2 million to 305 million. To ward off investor fears of a declining user base, management stated that Monthly Active Users (MAUs) had reached 307 million by the end of January 2016, showing positive active user growth. We believe that the user base is likely to have marginally improved in February and March as well.
In Q4 2015, Twitter’s overall revenues rose by 48% y-o-y to $711 million. Advertising revenue increased by 48% y-o-y over $640 million. This was primarily driven by a 153% y-o-y increase in the number of ad engagements due to growth in auto-play video ads. Going forward, we believe growth in overall ad engagement will continue to drive the company’s advertising business, as there is still significant potential to increase ad load levels on the micro-blogging platform.
Have more questions about Twitter? See the links below.
- Can Periscope Become The Pillar of Twitter’s Growth?
- What Is Twitter’s Ad Revenue Opportunity From Passive Users?
- The Key Downside Scenarios For Twitter’s Stock
- Twitter Tests New Timeline Order, But Can This Reinvigorate Growth?
- What Is Twitter’s Fundamental Value Based On Expected 2016 Results?
- Twitter’s Valuation: What Is Its Current Discount In The Market Relative To Facebook And LinkedIn?
- By How Much Did Twitter’s Revenue & EBITDA Change In The Last 5 Years?
- Twitter’s Revenue Composition: How Has It Changed And What’s The Future Outlook?
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