Stock Monitor: Care.com Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 10, 2018 / If you want access to our free earnings report on Twitter, Inc. (NYSE: TWTR), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=TWTR. The Company reported its first quarter fiscal 2018 operating and financial results on April 25, 2018. The social media Company delivered its second consecutive GAAP profitable quarter, and also surpassed revenue and earnings estimates. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For Q1 2018, Twitter's revenues totaled $654.9 million, reflecting an increase of 21% compared to $548.3 million in Q1 2017, driven by a continued strong ad engagement growth, improved revenue features, improved ROI, and better sales execution. The Company's revenue numbers topped analysts' estimates of $608 million.
During Q1 2018, Twitter's total US revenues grew 2% to $347 million on a y-o-y basis. The Company's total international revenues soared 53% to $318 million on a y-o-y basis, reflecting a growth across all regions with a particular strength in the Asia/Pacific region. Japan continued to be Twitter's second largest revenue market, increasing 61% on a y-o-y basis and contributing $117 million, or 18% of total revenues, in the reported quarter.
For Q1 2018, Twitter marked its second-straight quarter of GAAP profitability with a net income of $61 million, and diluted earnings per share (EPS) of $0.08, representing a significant improvement from a GAAP net loss of $62 million, and diluted loss of $0.09 per share, in Q1 2017. The Company continues to expect to be GAAP profitable for the full year FY18.
On a non-GAAP basis, Twitter's net income was $123 million, or $0.16 per diluted share, in Q1 2018 compared to $53 million, or $0.07 per diluted share, in Q1 2017. As a result of the Tax Cuts and Jobs Act 2017 (TCJA), the blended US federal and state statutory tax rate used to calculate the Company's reported non-GAAP provisions for income taxes decreased from 37% to 24%, beginning in Q1 2018. Twitter's earnings beat Wall Street's estimates of $0.12 per share.
During Q1 2018, Twitter's daily active users (DAU) grew 10% on a y-o-y basis, marking another quarter of double-digit growth. The Company recorded a double-digit DAU growth in 5 out of its top 10 global markets, demonstrating broad-based growth around the world.
For Q1 2018, Twitter's monthly active users (MAUs) grew 3% to 336 million on a y-o-y basis. MAU continued to be negatively impacted by changes made to Safari's third-party app integration, which affected approximately 1 million MAUs in the reported quarter. During Q1 2018, US MAU was 69 million, up 1 million on a q-o-q basis compared to 69 million in the year-ago same period.
Twitter's total ad engagements increased 69% on a y-o-y basis, resulting from an increased aggregate demand, continuing mix shift toward video ad impressions, and improved click-through rates (CTR). The Company's cost per engagement (CPE) decreased 28% on a y-o-y basis, primarily driven by the ongoing mix shift to video ad engagements, which have overall lower CPEs compared to other ad formats, as well as lower CPEs across the majority of ad formats versus the prior year.
During Q1 2018, Twitter's total advertising revenues were $575 million, reflecting an increase of 21% on a y-o-y basis. The Company's owned and operated (O&O) advertising revenues were $533 million in the reported quarter, representing an increase of 28% on a y-o-y basis.
For Q1 2018, Twitter's non-O&O advertising revenues were $42 million, down 28% on a y-o-y basis, driven by a drop of $23 million y-o-y from the deprecated TellApart product. Excluding TellApart, the Company's non-O&O advertising revenues would have increased by 18%. By region, US advertising revenues totaled $288 million and international ad revenues totaled $287 million in the reported quarter. International ad revenues increased 52%, led by strength in the Asia/Pacific region.
Twitter ended Q1 2018 with $4.5 billion in cash, cash equivalents, and marketable securities. The Company's GAAP net cash provided by operating activities was $243 million in the reported quarter, an increase from $203 million in the previous year.
For Q1 2018, Twitter's capital expenditure totaled $107 million, which primarily reflected investments in infrastructure. The Company's adjusted free cash flow was $135 million in the reported quarter compared to $126 million in the prior year's corresponding quarter.
Stock Performance Snapshot
May 9, 2018 - At Wednesday's closing bell, Twitter's stock climbed 1.92%, ending the trading session at $32.46.
Volume traded for the day: 20.66 million shares.
Stock performance in the last month – up 9.92%; previous three-month period – up 20.62%; past twelve-month period – up 76.70%; and year-to-date – up 35.19%
After yesterday's close, Twitter's market cap was at $24.05 billion.
Price to Earnings (P/E) ratio was at 66.24.
The stock is part of the Technology sector, categorized under the Internet Information Providers industry. This sector was up 1.2% at the end of the session.
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