Twitter Plummets After Slashing Guidance

Miraculously managing to beat user growth expectations (313mm MAUs vs 312mm MAUs exp) and EPS (+13c vs +9c exp), Twitter stock is plummeting after-hours after slashing Q3 revenue (and EBITDA) guidance drastically (from $681.4m to between $590 and $610mm). TWTR is trading down 11% after-hours…

As Bloomberg reports, Twitter said third-quarter revenue will be less than analysts expected Tuesday, a sign it’s struggling to win more advertising dollars as user growth stagnates.

The company forecast third-quarter revenue of $590 million to $610 million. Analysts were looking for $681.4 million.

 

Monthly active users were 313 million in the second quarter, up from 310 million during the prior quarter. That beat the average analyst estimate for 312 million, according to data compiled by Bloomberg.

 

Second-quarter sales grew 20 percent to $602 million, compared with the $607 million estimated by analysts.

 

Profit, excluding some items, was 13 cents per share. Analysts forecast 9 cents on average.

So to summarize, Q2 mixed…

  • *TWITTER 2Q ADJ. EPS 13C, EST. 9C (BIG BEAT)
  • *TWITTER  2Q REV. $602M, EST. $607.0M (MISS)

  • *TWITTER 2Q MAUS 313M , EST. 312M (SMALL BEAT)

But Q3 guidance is a disaster…

  • *TWITTER SEES 3Q REV. $590M TO $610M, EST. $681.4M; SHARES FALL
  • *TWITTER SEES 3Q ADJ EBITDA $135M TO $150M, EST. $168.8M

And the reaction…

via http://ift.tt/2a7GLzu Tyler Durden

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