What To Expect From Twitter’s Q1 Earnings?

Ngozi

Twitter [NYSE: TWTR] has raised everyone’s anticipation towards its Q1 2016 earnings report. The result will be relayed to the general public on the 26th of April, 2016.

According to its press release on its investor relations page, Twitter said:

“Twitter, Inc. (NYSE: TWTR) will release financial results for the first quarter of 2016 on April 26, 2016, after market close. On the same day, Twitter will host a conference call and earnings Periscope to discuss these financial results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time).

The company will be following the conversation about the earnings announcement on Twitter and Periscope. To have your questions considered during Q&A, Tweet your question to @TwitterIR using #TWTR or submit your question via Periscope. To watch a live broadcast of earnings on Periscope, follow the @TwitterIR account.

To listen to a live audio webcast, please visit the company’s Investor Relations page at investor.twitterinc.com. Twitter has used, and intends to continue to use, its Investor Relations website and the Twitter accounts of @jack, @twitter and @TwitterIR as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.”

Twitter users
Source: Twitter

Twitter has not given any profit warning yet. This foes not however suggest that Twitter will be posting a profit. The micro-blog has come under intense pressure to turn profit and grow its user base which is seeing a decreasing trends.

According to data made available by Twitter, the platform currently (as at December 31st, 2016) has about 320 million active users worldwide. 80% of them are active daily and 70% of them are outside of the US. This puts the company in a good position to grow globally. However, growth has not really being forthcoming.

periscope
Source: Periscope.tv

To grow inorganically, Twitter has bought over Periscope for USD 86 million. Periscope is an app that allows Twitter users to do live video broadcast on Twitter. Twitter looks towards this sort of acquisitions to deepen engagement on the platform and as well increase its user base.

As at August 2015, Periscope already has over 10 million users. The app has Meerkat as a competition, Meerkat has just about 2 million users worldwide as at August of last year.

Jack Dorsey, CEO, Twitter Inc.
Jack Dorsey, CEO, Twitter Inc. Source: VanityFair

In Q4 2015 Earnings results, Twitter listed its major product innovations and key initiatives such as:

  • We added native video capabilities to Twitter, which led to video views rising 220x from December 2014 to December 2015. As a sign of how far we’ve come: when Disney chose to release its first full trailer for “Star Wars: The Force Awakens”, they did it first on Twitter.
  • We launched Periscope, which has quickly become an indispensable live video tool for journalists, musicians, athletes, politicians, activists, and everyday people to share the world around them.
  • We expanded Direct Messages (DMs) for private conversations for up to 50 people, and boosted the character limit for individual messages from 140 to 10,000. DMs rose significantly in 2015 – 61% year-over-year growth in messages sent in Q4.
  • We unveiled Moments, a new way to get the best of what’s happening on Twitter in an instant, in the U.S., U.K., and Brazil, and supported the launch with our first integrated marketing campaign.
  • We struck a new agreement with Google for search integration on both mobile and desktop queries, and the integration of Twitter into DoubleClick bidding and measurement systems.
  • We completed the global roll-out of our self-service advertising platform, which helped contribute to the total number of advertisers rising nearly 90% year-over-year in Q4.
  • We expanded direct response objectives – website clicks and conversions – onto the Twitter Audience Platform (TAP) in beta, giving direct response advertisers a way to measure results from the TAP audience of 700 million devices.
  • We added more than 20 new features and updates to our developer tools, including integration of third-party development kits like AWS, Stripe, and Optimizely into Fabric.

 

In the second week of October 2015, Twitter laid off about 8% of its total workforce, (this is about 336 people). Jack Dorsey, CEO, Twitter said “We are moving forward with a restructuring of our workforce so we can put our company on a stronger path to grow….will go to great lengths to take care of each individual by providing generous exit packages and help finding a new job”.

It will be interesting to see what magic Twitter will perform to turn the tide in their favour. In Q4 2015, Twitter said its advertising revenue, the major source of revenue for the company “grew 153% year over year”. At least, shareholders are looking forward to a profit declaration.

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