U.S. Markets open in 2 hrs 17 mins
  • S&P Futures

    3,912.75
    -9.75 (-0.25%)
     
  • Dow Futures

    31,928.00
    +12.00 (+0.04%)
     
  • Nasdaq Futures

    13,187.50
    -114.50 (-0.86%)
     
  • Russell 2000 Futures

    2,290.30
    +5.20 (+0.23%)
     
  • Crude Oil

    63.43
    +0.21 (+0.33%)
     
  • Gold

    1,784.70
    -13.20 (-0.73%)
     
  • Silver

    28.03
    +0.11 (+0.38%)
     
  • EUR/USD

    1.2231
    +0.0063 (+0.5137%)
     
  • 10-Yr Bond

    1.3890
    0.0000 (0.00%)
     
  • Vix

    22.65
    -0.46 (-1.99%)
     
  • GBP/USD

    1.4145
    +0.0004 (+0.0269%)
     
  • USD/JPY

    106.1670
    +0.2850 (+0.2692%)
     
  • BTC-USD

    50,504.05
    -57.64 (-0.11%)
     
  • CMC Crypto 200

    1,010.17
    +15.51 (+1.56%)
     
  • FTSE 100

    6,682.93
    +23.96 (+0.36%)
     
  • Nikkei 225

    30,168.27
    +496.57 (+1.67%)
     
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

What to expect from Twitter's Q4 earnings report

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Yahoo Finance's Emily McCormick breaks down the latest outlook for Twitter ahead of the company's Q4 earnings report on Tuesday.

Video Transcript

ZACK GUZMAN: And for more on what to expect when Twitter reports after the bell tomorrow, I want to bring on Yahoo Finance's Emily McCormick with a look at that. And Emily, I mean, on the Twitter front, we've been waiting for some pretty important updates around how they might plan to monetize their platform a bit more. So what are you going to be bracing to learn here when we get that update tomorrow?

EMILY MCCORMICK: That's right, Zack, it's really going to be all about those average monetizable daily active users, as well as that ad growth. Really, that we-- what we saw from these social media companies that have already reported is that there has been a pretty robust rebound here on the internet advertising side of businesses. Twitter is going to be one of the last major social media companies to report. And remember that we did already see tech companies like Facebook, Alphabet, Pinterest, and Snap really blow away fourth quarter expectations, thanks to that rebounding ad sales side.

Now, based on these earlier results, clearly the internet marketing backdrop has improved from earlier on in 2020 when the pandemic weakened companies' ability to spend on advertising. But for Twitter, we are expecting to see the company report record quarterly revenue in the final three months of last year, as well as its second ever quarter of doing more than $1 billion in sales.

So specifically, consensus analysts are looking to see Twitter grow revenue 18% over last year to $1.2 billion. That would actually be an acceleration from the 14% growth rate we saw in the third quarter. And Twitter is also expected to report about 193.4 million monetizable daily active users, which would be growth of about 27% year-over-year, or about the same from what we saw in the third quarter.

Now, one thing to note about these fourth quarter results is that they are not going to include any impact from Twitter's decision to block former President Donald Trump from the platform and remove some other accounts as well since those did take place in January. The company may be asked about these decisions in their earnings call. But just taking a look at what most analysts have been saying, not too worried here about user engagement being dampened by that move.

And then finally, Zack, to your point on product innovation, one point to really watch here is whether Twitter provides an official update about potentially moving to a partial subscription service here. That's something that's been speculated for the past year or so. And we did have CEO Jack Dorsey speak about moving to a subscription model last year, but not too much momentum when it comes to official word here from Twitter since then. So potentially something that could also boost the top line, augment these ad revenue sales, and it's something, I think, that we should be watching, as well, when we get those reports tomorrow afternoon. Zack and Akiko.

AKIKO FUJITA: Yeah, Emily, the subscription issue something that has been raised in previous earnings calls as well. We'll be watching to see if those reports of them potentially trying to monetize TweetDeck are true. Thanks so much for that, Emily.