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Robust Video Content to Drive Twitter's (TWTR) Q4 Earnings

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Twitter Inc. is set to report fourth-quarter 2018 results on Feb 7.

The company revamped its app with new features including robust video content. Twitter is exploring beyond news and the series of live streaming deals are a step in that direction. This is anticipated to boost its user base and in turn contribute to ad dollars in the soon-to-be reported quarter.

Notably, growing adoption of video ad products like Video Website Cards & Video App Cards is a key catalyst for Twitter.

Click here to know how Twitter’s overall fourth-quarter performance is expected to be. 

Twitter, Inc. Price and EPS Surprise

Twitter, Inc. Price and EPS Surprise | Twitter, Inc. Quote

Video Push to Aid Ad Dollars

Twitter’s push into the video streaming segment will make its advertising business (85.7% of total revenues) even more lucrative. Video ads, which accounted for more than half of ad revenues in third-quarter 2018, remained Twitter’s fastest-growing ad format.

Twitter locked deals with the likes of Activision , Major League Baseball (MLB), Sony Music, FOX Sports Asia, Disney's (DIS - Free Report) ESPN, and Viacom to air “live-streaming and video highlights” content on its platform. Notably, live-streaming events are available in more than 40 languages.

In the quarter under review, the company inked deals with The PGA TOUR to distribute nearly 140 hours of live competition from PGA TOUR LIVE across 28 tournaments during the 2018-19 PGA TOUR Season. Notably, Twitter has brought on board 53 video content partnerships from the APAC region alone.

In the last reported quarter, advertising revenues increased 29% year over year to $649.8 million. Moreover, ad engagements increased 50% year over year.

The Zacks Consensus Estimate for advertising revenues in the to-be reported quarter is pegged at $760 million, indicating an increase of 18% year over year.

Twitter currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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