Twitter announces financial results for first quarter of 2018
The company reported a YoY increase of 21 per cent, with first quarter revenue of $665 million.
Published - Apr 26, 2018 11:52 AM Updated: Apr 26, 2018 11:52 AM
Twitter Inc. has announced the financial results for the first quarter of the year 2018. The company has reported a YoY increase of 21 per cent, with first quarter revenue of $665 million.
Speaking on the results, Jack Dorsey, Twitter CEO said, "The first quarter was a strong start to the year. We grew our audience and engagement, marking another quarter of double digit year-over-year DAU growth, and continued our work to make it easier to follow topics, interests, and events on Twitter. We also introduced a new framework to think more cohesively about the issues affecting our service, including information quality and safety. This holistic approach will help us more effectively address these challenges by viewing them through the broader lens of the health of the public conversation, and we're encouraged by our initial progress in this area."
Twitter CFO Ned Segal, added,"We're pleased to report growth across all major products and geographies in the first quarter. "We grew total revenue 21% year-over-year and owned-and-operated advertising revenue 28% year-over-year, driven by continued audience growth, differentiated ad product features, improved ROI, and better sales execution. Our strong revenue performance drove better than expected profits and GAAP net margins of 9%, reflecting our continued prioritization and disciplined execution across our strategic priorities."
Operational and Financial Highlights of First Quarter 2018:
The company's quarterly GAAP net earnings were $61 million, representing a GAAP net margin of 9% and GAAP diluted EPS of $0.08. This is in comparison to a quarterly GAAP net loss of $62 million, a GAAP net margin of (11%) and GAAP diluted EPS of ($0.09) for the same period last year.
Quarterly non-GAAP net income was $123 million, representing a non-GAAP diluted EPS of $0.16. This compares with a quarterly non-GAAP net income of $53 million, representing a non-GAAP diluted EPS of $0.07 for the same period last year. As a result of the 2017 Tax Cuts and Jobs Act, 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. Approximately $21 million of the $70 million year-over-year increase in non-GAAP net income resulted from this change.
Adjusted EBITDA was $244 million or 37% of total revenue, compared to $170 million or 31% of total revenue for the same period last year.
Average monthly active users (MAUs) were 336 million for the quarter, an increase of 3% year-over-year and an increase of 6 million compared to 330 million in the previous quarter. Average daily active users (DAU) grew 10% year-over-year, marking another quarter of double-digit growth.
Q2 and Financial Year 2018 Forecast:
- Adjusted EBITDA to be between $245 million and $265 million.
- Adjusted EBITDA margin to be between 37% and 38%.
- Stock-based compensation expense to be in the range of $85 million to $95 million.
- Stock-based compensation expense to be in the range of $350 million to $450 million.
- Capital expenditures to be between $375 million and $450 million.
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