Get All Access for FREEMarket News & Research,
Live Transcripts & Audio,
and a whole lot more…
$TWTR said that there won't be any improvement in the revenue growth rate for the second half of 2017 owing to its $75MM headwind as a result of TellApart shutdown and other deemphasized products. This $75MM headwind also includes NFL opting out from Twitter and selecting $AMZN for its "Thursday Night Football" game live-stream this fall.
Struggling social network $TWTR, who unveiled a major redesign to the site last month, said it had 328MM monthly active users at the end of second quarter 2017, remains unchanged from the first quarter 2017. Twitter stock nosedived as it fails to add new users in the current quarter.
Being a content maker, $CBS said that it wants to sell the content and it likes to make different deals with $FB and $TWTR. The company added that it already has got some existing deals with $FB and $TWTR. $CBS believes that the combination with Facebook and Twitter will be a new source of revenue for it.
For FY17, $TWTR guided that expenses will be flat to down 5%. The company plans to invest a little more in marketing and headcount in Q2. R&D, S&M and G&A expense ratios are expected to improve. Stock-based compensation is now expected to be down 20-25% compared to the previous expectation of 15-20% decline.
$TWTR pulled back from the products that it invested in 2016 hoping that they they would contribute in 2017. Now, the company has put those resources against higher probability bets like premium display advertising premium display advertising and online video advertising.
$TWTR stated that it will continue to face incremental headwinds in each quarter throughout 2017 from the discontinued products. The product changes are expected to have an impact on the new users. The social network signed 32 additional upfront deals since the last earnings call and sees momentum in the number of upfront commitments signed.
$TWTR stated that daily active user (DAU) growth in 1Q17 was driven primarily by organic growth, reflecting some seasonal strength followed by improvements in marketing. DAU growth accelerated in seven of its top 10 global markets, the company added.
For 2Q17, $TWTR expects adjusted EBITDA to be between $95-115MM, adjusted EBITDA margin to be 21-21.5%, and stock-based compensation to be between $115-125MM. For FY17, total non-GAAP expenses are expected to be flat to down 5%, and capex to be $300-400MM.
Social network $TWTR posted an 8% slide in 1Q17 revenue. Quarterly net loss was $62MM or $0.09 per diluted share, better than last year's loss of $80MM or $0.12 per share. Average monthly active users were 328MM for the quarter, up 6%. Average daily active usage grew 14% year-over-year.