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Twitter (TWTR) Q1 Earnings Beat Estimates, Ad Revenues Rise
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Twitter reported first-quarter 2022 adjusted earnings of 90 cents per share, which increased 462.5% year over year and beat the Zacks Consensus Estimate by 125%.
Revenues increased 16% year over year to $1.20 billion but lagged the Zacks Consensus Estimate by 0.99%.
Advertising revenues increased 23% year over year to $1.11 billion. Subscription and other revenue reached $94 million, down 31% year over year or 5% year over year when excluding MoPub from the year-ago period
User Details
Average monetizable daily active users (mDAU) rose 15.9% year over year and 5.5% sequentially, to 229 million.
The average U.S. mDAU was 39 million, up 6.4% on a year-over-year basis and 4.2% quarter-over-quarter basis. The average international mDAU was 189.4 million, rising 18.1% year over year and 5.6% sequentially.
Twitter’s total costs and expenses were $1.33 billion, up 35% on a year-over-year basis, driven by higher sales-related expenses, headcount growth, infrastructure costs and marketing costs.
Research and development expenses jumped 48.3% to $372 million, primarily due to higher personnel-related costs.
Sales and marketing expenses increased 37.8% to $299.8 million, primarily due to higher marketing expenses, personnel-related costs and sales commissions.
General and administrative expenses surged 27.5% year over year to $149.9 million, primarily due to higher personnel-related costs and professional fees.
Adjusted EBITDA increased 301.3% year over year to $1.18 billion.
Twitter reported an operating income of $128 million compared with $52 million reported in the year-ago quarter.
Balance Sheet
As of Mar 31, 2022, Twitter had $6.26 billion in cash, cash equivalents and short-term investments. The company had $6.39 billion in cash, cash equivalents and short-term investments as of Dec 31, 2021.
Net cash from operating activities in the reported quarter was $126 million against net cash used in operating activities of $528 million in the previous quarter.
In the first quarter, adjusted free cash outflow was $35 million compared with free cash outflow of $667 million in the previous quarter.
The company repurchased $2.08 million of stock during the first quarter, bringing the total repurchase amount to $3.26 billion to date.
Post Quarter Development
On Apr 25, Twitter entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk for $54.20 per share in cash.
With the completion of the transaction, which is expected close in 2022, Twitter will become a privately-held company.
Zacks Rank & Stock to Consider
Currently, Twitter has a Zacks Rank #4 (Sell).
Twitter shares are up 12.5% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s decline of 23.3%.
Cogent Communications shares have underperformed the sector in the year-to-date period, declining 13.6%. The company is scheduled to release first-quarter 2022 results on May 5.
BWX Technologies shares have underperformed the sector in the year-to-date period, declining 9.3%. The company is set to announce first-quarter 2022 results on May 9.
Analog Devices shares have underperformed the sector in the year-to-date period, declining 11.1%. The company is set to announce second-quarter 2022 results on May 18.
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Twitter (TWTR) Q1 Earnings Beat Estimates, Ad Revenues Rise
Twitter reported first-quarter 2022 adjusted earnings of 90 cents per share, which increased 462.5% year over year and beat the Zacks Consensus Estimate by 125%.
Revenues increased 16% year over year to $1.20 billion but lagged the Zacks Consensus Estimate by 0.99%.
Advertising revenues increased 23% year over year to $1.11 billion. Subscription and other revenue reached $94 million, down 31% year over year or 5% year over year when excluding MoPub from the year-ago period
User Details
Average monetizable daily active users (mDAU) rose 15.9% year over year and 5.5% sequentially, to 229 million.
The average U.S. mDAU was 39 million, up 6.4% on a year-over-year basis and 4.2% quarter-over-quarter basis. The average international mDAU was 189.4 million, rising 18.1% year over year and 5.6% sequentially.
Twitter, Inc. Price, Consensus and EPS Surprise
Twitter, Inc. price-consensus-eps-surprise-chart | Twitter, Inc. Quote
Operating Details
Twitter’s total costs and expenses were $1.33 billion, up 35% on a year-over-year basis, driven by higher sales-related expenses, headcount growth, infrastructure costs and marketing costs.
Research and development expenses jumped 48.3% to $372 million, primarily due to higher personnel-related costs.
Sales and marketing expenses increased 37.8% to $299.8 million, primarily due to higher marketing expenses, personnel-related costs and sales commissions.
General and administrative expenses surged 27.5% year over year to $149.9 million, primarily due to higher personnel-related costs and professional fees.
Adjusted EBITDA increased 301.3% year over year to $1.18 billion.
Twitter reported an operating income of $128 million compared with $52 million reported in the year-ago quarter.
Balance Sheet
As of Mar 31, 2022, Twitter had $6.26 billion in cash, cash equivalents and short-term investments. The company had $6.39 billion in cash, cash equivalents and short-term investments as of Dec 31, 2021.
Net cash from operating activities in the reported quarter was $126 million against net cash used in operating activities of $528 million in the previous quarter.
In the first quarter, adjusted free cash outflow was $35 million compared with free cash outflow of $667 million in the previous quarter.
The company repurchased $2.08 million of stock during the first quarter, bringing the total repurchase amount to $3.26 billion to date.
Post Quarter Development
On Apr 25, Twitter entered into a definitive agreement to be acquired by an entity wholly owned by Elon Musk for $54.20 per share in cash.
With the completion of the transaction, which is expected close in 2022, Twitter will become a privately-held company.
Zacks Rank & Stock to Consider
Currently, Twitter has a Zacks Rank #4 (Sell).
Twitter shares are up 12.5% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s decline of 23.3%.
Cogent Communications (CCOI - Free Report) , BWX Technologies (BWXT - Free Report) and Analog Devices (ADI - Free Report) are some stocks that investors can consider from the broader sector. All the three stocks sport a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cogent Communications shares have underperformed the sector in the year-to-date period, declining 13.6%. The company is scheduled to release first-quarter 2022 results on May 5.
BWX Technologies shares have underperformed the sector in the year-to-date period, declining 9.3%. The company is set to announce first-quarter 2022 results on May 9.
Analog Devices shares have underperformed the sector in the year-to-date period, declining 11.1%. The company is set to announce second-quarter 2022 results on May 18.