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Twitter (TWTR) to Report Q4 Earnings: What's in the Cards?
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Twitter is set to report fourth-quarter 2021 results on Feb 10.
For the fourth quarter of 2021, the company expects total revenues between $1.5 billion and $1.6 billion. The Zacks Consensus Estimate for revenues stands at $1.57 billion, indicating growth of 21.84% from the year-ago quarter’s reported figure.
The consensus mark for fourth-quarter earnings is unchanged at 33 cents per share in the past 30 days, indicating a decline of 13.16% from the year-ago quarter’s levels.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same in one. TWTR has a trailing four-quarter negative earnings surprise of 47.75%, on average.
Twitter’s ad revenues are expected to have remained steady in the fourth quarter, driven by an upswing in advertiser sentiment for digital ads, following the coronavirus-induced sluggishness and improved demand for Twitter’s solutions — fueled by the resumption of more events and product launches.
The Zacks Consensus Estimate for advertising revenues is pegged at $1.42 billion, indicating growth of 23.3% from the year-ago quarter’s reported figure.
The company’s initiatives to add features and focus on tackling abuse issues are expected to have helped it expand its monetized user base in the to-be-reported quarter.
In fourth-quarter 2021, average monetizable DAU (mDAU) rose 13% year over year to 211 million, driven by global conversation around current events and ongoing product improvements.
Twitter had been testing a new feature called Communities, which would help groups of Twitter users to engage and interact with other users. The company aims to create a more intimate space for conversation based on users’ shared interests.
In addition, Twitter introduced a new tipping feature that allows hosts to charge admission to their live audio chat room in its Spaces feature. This is expected to have attracted more content creators in the to-be-reported quarter. Currently, Twitter Spaces is available for iOS and Android apps besides mobile and desktop browsing.
The rollout of Ticketed Spaces, a feature that helps hosts earn money from exclusive live audio experiences on Twitter Spaces., is also expected to have benefited the company’s user growth.
Twitter started rolling out its super-premium subscription option, Super Follows. The feature allows users to subscribe to accounts they find engaging for a monthly subscription fee in exchange for exclusive content.
Twitter’s improved ability to proactively identify and remove abusive and misleading content from the platform has been a notable development in this regard.
Recently, Twitter introduced a pilot test feature to reduce misinformation from being spread via its platform
Twitter also unveiled a ‘Birdwatch’ feature to flag potentially misleading tweets. The test feature helped users to provide context to tweets that they might find false or misleading, though those notes were held on a different website.
Steady demand for video ad products like Video Website Cards and in-stream pre-roll is likely to have contributed to the top line.
However, rising expenses due to increased investments are expected to have put pressure on profit margins.
Q4 Highlights
In November, Twitter and ViacomCBS announced a new, multi-year global agreement to deliver premium digital content around. ViacomCBS’ biggest live events, hit shows and iconic franchises. Paramount+ will also host three Twitter Watch Parties in partnership with Twitter.
On Oct 7, Twitter announced entered into a definitive agreement to sell its MoPub mobile advertising network to game developer and ad-tech company AppLovin Corporation for $1.05 billion cash. Twitter intends to utilize the proceeds received from the sale deal to build its owned and operated revenue-generating features and drive growth across key areas for the service, including performance-based advertising, small and medium-sized business (SMB) offerings and commerce initiatives.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Twitter has an Earnings ESP of +2.41% and a Zacks Rank #5. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
CDW shares have outperformed the Zacks Computer & Technology sector in the past year. CDW returned 27.2% compared with the sector’s rise of 2.3%. The company is set to report fourth-quarter 2021 results on Feb 9, 2022.
Fastly (FSLY - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2.
Fastly’s shares are down 75.9% in the past year. Fastly is set to report fourth-quarter 2021 results on Feb 16, 2022.
Image: Bigstock
Twitter (TWTR) to Report Q4 Earnings: What's in the Cards?
Twitter is set to report fourth-quarter 2021 results on Feb 10.
For the fourth quarter of 2021, the company expects total revenues between $1.5 billion and $1.6 billion. The Zacks Consensus Estimate for revenues stands at $1.57 billion, indicating growth of 21.84% from the year-ago quarter’s reported figure.
The consensus mark for fourth-quarter earnings is unchanged at 33 cents per share in the past 30 days, indicating a decline of 13.16% from the year-ago quarter’s levels.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same in one. TWTR has a trailing four-quarter negative earnings surprise of 47.75%, on average.
Twitter, Inc. Price and EPS Surprise
Twitter, Inc. price-eps-surprise | Twitter, Inc. Quote
Factors to Consider
Twitter’s ad revenues are expected to have remained steady in the fourth quarter, driven by an upswing in advertiser sentiment for digital ads, following the coronavirus-induced sluggishness and improved demand for Twitter’s solutions — fueled by the resumption of more events and product launches.
The Zacks Consensus Estimate for advertising revenues is pegged at $1.42 billion, indicating growth of 23.3% from the year-ago quarter’s reported figure.
The company’s initiatives to add features and focus on tackling abuse issues are expected to have helped it expand its monetized user base in the to-be-reported quarter.
In fourth-quarter 2021, average monetizable DAU (mDAU) rose 13% year over year to 211 million, driven by global conversation around current events and ongoing product improvements.
Twitter had been testing a new feature called Communities, which would help groups of Twitter users to engage and interact with other users. The company aims to create a more intimate space for conversation based on users’ shared interests.
In addition, Twitter introduced a new tipping feature that allows hosts to charge admission to their live audio chat room in its Spaces feature. This is expected to have attracted more content creators in the to-be-reported quarter. Currently, Twitter Spaces is available for iOS and Android apps besides mobile and desktop browsing.
The rollout of Ticketed Spaces, a feature that helps hosts earn money from exclusive live audio experiences on Twitter Spaces., is also expected to have benefited the company’s user growth.
Twitter started rolling out its super-premium subscription option, Super Follows. The feature allows users to subscribe to accounts they find engaging for a monthly subscription fee in exchange for exclusive content.
Twitter’s improved ability to proactively identify and remove abusive and misleading content from the platform has been a notable development in this regard.
Recently, Twitter introduced a pilot test feature to reduce misinformation from being spread via its platform
Twitter also unveiled a ‘Birdwatch’ feature to flag potentially misleading tweets. The test feature helped users to provide context to tweets that they might find false or misleading, though those notes were held on a different website.
Steady demand for video ad products like Video Website Cards and in-stream pre-roll is likely to have contributed to the top line.
However, rising expenses due to increased investments are expected to have put pressure on profit margins.
Q4 Highlights
In November, Twitter and ViacomCBS announced a new, multi-year global agreement to deliver premium digital content around. ViacomCBS’ biggest live events, hit shows and iconic franchises. Paramount+ will also host three Twitter Watch Parties in partnership with Twitter.
On Oct 7, Twitter announced entered into a definitive agreement to sell its MoPub mobile advertising network to game developer and ad-tech company AppLovin Corporation for $1.05 billion cash. Twitter intends to utilize the proceeds received from the sale deal to build its owned and operated revenue-generating features and drive growth across key areas for the service, including performance-based advertising, small and medium-sized business (SMB) offerings and commerce initiatives.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Twitter has an Earnings ESP of +2.41% and a Zacks Rank #5. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
CDW (CDW - Free Report) has an Earnings ESP of +2.00% and carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CDW shares have outperformed the Zacks Computer & Technology sector in the past year. CDW returned 27.2% compared with the sector’s rise of 2.3%. The company is set to report fourth-quarter 2021 results on Feb 9, 2022.
Fastly (FSLY - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #2.
Fastly’s shares are down 75.9% in the past year. Fastly is set to report fourth-quarter 2021 results on Feb 16, 2022.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.