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Twitter posts beat on revenue and EPS, misses on monetizable daily active users

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  • TWTR

Twitter reported beats on the top and bottom line, posting $1.29B in revenue and $.38 EPS, compared to consensus estimates of $1.19B and $.31 EPS. However, the social media giant posted a miss on monetizable daily active users, reporting 192 million vs. 193.5 million expected. Yahoo Finance’s Jared Blikre joined Yahoo Finance Live to break down the other key metrics.

Video Transcript

SEANA SMITH: And Ines, I'll take it from here. We're going to talk more about Lyft earnings in just a minute. But first, we want to get over to Jared Blikre, who has Twitter's earnings for us. Jared.

JARED BLIKRE: That's right. We got the stock down about 2% now in after hours trading. And that's because of a miss on a key metric here. Now on both the top and bottom lines, those were beats, but average monetizeable daily average users, that came in at 192 million. Estimate was for higher at 193.5 million.

And also their guidance was a little bit light. They're saying first quarter revenue of $940 million to $1.04 billion-- excuse me. You take the midpoint of that, about $971 million. That is lower than the Street's estimate of $983.4 million. So just those top line numbers of revenue coming in at $1.29 billion. That is up 28% year over year. Estimate was for lower at $1.19 billion.

Also looking like their capex are-- they're increasing their capital expenditures to $900 million to $950 million in 2021. That is higher than the Street estimated, investing for future growth. But it could limit some of their profitability and margins this year.

So really, it's that key headline number here, fourth quarter average monetizeable daily average users-- wow, that's a mouthful-- 192 million. That was lower than the Street expected and also that guidance being a little bit like probably explaining why there has been a little bit of a tepid reception here, although we can see the shares climbing into the green right now.

One final note-- they do have an investor day on February 25th. And they might be holding a little bit back for that particular day. So we'll have to see what happens in the coming weeks. But paying attention to this into the open tomorrow. Guys.