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For the first quarter of 2022, the company expects total revenues between $1.17 billion and $1.27. The Zacks Consensus Estimate for revenues stands at $1.21 billion, indicating growth of 17.01% from the year-ago quarter’s reported figure.
The consensus mark for first-quarter earnings moved down by a cent to 4 cents per share in the past 30 days, indicating a decline of 75% from the year-ago quarter’s levels.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and were in line with the same in one. TWTR has a trailing four-quarter negative earnings surprise of 54.41%, on average.
Factors to Consider
Twitter’s ad revenues are expected to have remained steady in the first quarter, driven by an upswing in advertiser sentiment for digital ads, driven by the improved demand for Twitter’s solutions — fueled by the resumption of more events and product launches.
The usage of Twitter’s services is facing significant competition from the likes of TikTok, Meta’s family of Apps — Facebook, Messenger, Instagram and WhatsApp — and Snap (SNAP - Free Report) .
According to an e-Marketer report, social network ad spending will spike in 2022 and is expected to overtake search for the first time in history. This bodes well for Twitter and also for Meta’s Facebook, Snap’s Snapchat and TikTok.
The Zacks Consensus Estimate for first-quarter advertising revenues is pegged at $1.122 billion, indicating growth of 24.8% from the year-ago quarter’s reported figure.
Twitter continues to ramp up its effort to safeguard its platform and boost trustworthiness. The company continues to remove accounts and fake pages to make the platform more secure and improve the quality of conversation.
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 daily active users (mDAU) rose 13% year over year and 3% sequentially, to 217 million, driven by progress across Twitter’s consumer and revenue products portfolio.
The Zacks Consensus Estimate for this Zacks Rank #4 (Sell) company’s average monetizable daily active users (mDAU) is pegged at $228 million, indicating growth of 14.6% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
Key Q1 Highlights
Last year in October, Twitter entered into a definitive agreement to sell its MoPub mobile advertising network to game developer and ad-tech company AppLovin Corporation (APP - Free Report) for $1.05 billion in cash.
Twitter announced closed the sale of MoPub to AppLovin on Jan 1.
On Jan 20, Twitter announced the launch of a tool that will enable users to showcase non-fungible tokens (NFTs) as their profile pictures. The feature is currently available on iOS to users subscribed with the blue subscription service of Twitter.
Post-Quarter Development
In April, Twitter announced that Elon Musk bought a 9.2% stake in the company, making him the largest shareholder.
Image: Bigstock
Twitter (TWTR) to Report Q1 Earnings: What's in the Cards?
Twitter is set to report first-quarter 2022 results on Apr 28.
For the first quarter of 2022, the company expects total revenues between $1.17 billion and $1.27. The Zacks Consensus Estimate for revenues stands at $1.21 billion, indicating growth of 17.01% from the year-ago quarter’s reported figure.
The consensus mark for first-quarter earnings moved down by a cent to 4 cents per share in the past 30 days, indicating a decline of 75% from the year-ago quarter’s levels.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and were in line with the same in one. TWTR has a trailing four-quarter negative earnings surprise of 54.41%, on average.
Factors to Consider
Twitter’s ad revenues are expected to have remained steady in the first quarter, driven by an upswing in advertiser sentiment for digital ads, driven by the improved demand for Twitter’s solutions — fueled by the resumption of more events and product launches.
The usage of Twitter’s services is facing significant competition from the likes of TikTok, Meta’s family of Apps — Facebook, Messenger, Instagram and WhatsApp — and Snap (SNAP - Free Report) .
According to an e-Marketer report, social network ad spending will spike in 2022 and is expected to overtake search for the first time in history. This bodes well for Twitter and also for Meta’s Facebook, Snap’s Snapchat and TikTok.
The Zacks Consensus Estimate for first-quarter advertising revenues is pegged at $1.122 billion, indicating growth of 24.8% from the year-ago quarter’s reported figure.
Twitter continues to ramp up its effort to safeguard its platform and boost trustworthiness. The company continues to remove accounts and fake pages to make the platform more secure and improve the quality of conversation.
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.
Twitter, Inc. Price and EPS Surprise
Twitter, Inc. price-eps-surprise | Twitter, Inc. Quote
In fourth-quarter 2021, average monetizable daily active users (mDAU) rose 13% year over year and 3% sequentially, to 217 million, driven by progress across Twitter’s consumer and revenue products portfolio.
The Zacks Consensus Estimate for this Zacks Rank #4 (Sell) company’s average monetizable daily active users (mDAU) is pegged at $228 million, indicating growth of 14.6% from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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.
Key Q1 Highlights
Last year in October, Twitter entered into a definitive agreement to sell its MoPub mobile advertising network to game developer and ad-tech company AppLovin Corporation (APP - Free Report) for $1.05 billion in cash.
Twitter announced closed the sale of MoPub to AppLovin on Jan 1.
On Jan 20, Twitter announced the launch of a tool that will enable users to showcase non-fungible tokens (NFTs) as their profile pictures. The feature is currently available on iOS to users subscribed with the blue subscription service of Twitter.
Post-Quarter Development
In April, Twitter announced that Elon Musk bought a 9.2% stake in the company, making him the largest shareholder.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.