Twitter’s Q3 Revenue Likely To Decline Even As MAUs Improve
Twitter (NYSE:TWTR) is set to report its Q3 2017 earnings on Thursday, October 26. In the previous quarter, the company failed to report growth in revenues, primarily due to a 14% decline in its U.S. advertising revenues. Additionally, its average monthly active users (MAUs) saw tepid growth. In this earnings announcement, we expect:
- Twitter’s revenues will likely continue to fall as the company has not been able to monetize its MAUs. We expect revenues to be between $570-$590 million, against $616 million reported in Q3’16.
- Average revenue per user (ARPU) will decline as overall MAUs will increase slightly while advertising revenues fall.
- Revenues from the U.S. will decline yet again as advertisers spend less on Twitter. We also expect MAUs to stabilize around 69 million for the U.S. market.
- Due to live streaming and increased video content, total ad engagements increased 95% in Q2. The company also announced 40 live-streaming partnerships, including two 24×7 networks and 10 international deals during the quarter. We expect that these initiatives once again drove engagement levels in Q3, and expect the click-through rates to grow.
Twitter expects adjusted EBITDA to range between $130 – $150 million, significantly lower than its Q3 2016 figure of $181 million.
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