Why Twitter Rose on Earnings Beat Last Week
Stock rose 21.6% last week
Twitter (TWTR) stock rose 21.6% in the week ended February 9, 2018, to close at $31.51. Twitter is now trading 123% above its 52-week low of $14.12 and 10% below its 52-week high of $35. The stock rose 47% in 2017 and has generated returns of 92% in the trailing 12-month period.
Twitter stock rose after the company reported its 4Q17 results last week. It reported revenue of $731.6 million, a rise of 2% YoY (year-over-year) and 6.5% above analysts’ estimate of $686 million. Net profit was $91.1 million, or $0.12 per share, while non-GAAP (generally accepted accounting principles) EPS was $0.19 and above analysts’ estimate of $0.14.
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International revenue for Twitter
While Twitter’s 4Q17 revenue from the United States fell 8%, revenue from international markets rose 17% YoY. Revenue from Japan (EWJ) rose 34% YoY to $106 million. Twitter was struggling to grow revenue after three consecutive quarters of decline, despite the presence of top personalities on its platform. It also recently doubled its character usage.
Daily active users for Twitter rose 12% YoY in 4Q17, while monthly active users rose 4% to 330 million. Facebook (FB) has more than 2 billion monthly users. Snap’s DAU (daily active user) figure was 187 million.
Twitter has focused on personalizing advertisements to users, which resulted in higher click-through rates. Data licensing and non-advertising revenue rose 10% YoY to $87 million in 4Q17, and total advertising revenue rose 1% YoY to $644 million.