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  • 10 Things We Need To Know After Twitter's 2Q14 Results 0 comments
    Aug 4, 2014 10:15 AM | about stocks: TWTR
    10 things we need to know after Twitter's 2Q14 results

    Source: Twitter

    1. Share price - roller coaster:

    2013-11-06IPO$26.00 -> $44.9 (up 72.7%)
    2013-12-26Highest price$74.73
    2014-04-301Q14 results$42.62 -> $37.66 (down 11.6%)
    2014-07-302Q14 results$38.59 -> $46.30 (up 20.0%)
    2014-08-013rd day after 2Q results$44.13

    (click to enlarge)

    Source: Bloomberg (share price since IPO)

    2. Here you go, 2Q14 numbers:

    · Average Monthly Active Users (MAUs) were 271 million, up 24% YoY or 6.3% QoQ (5.8% and 3.87% growth in the two previous quarters).

    · Q2 revenue of $312 million, up 124% YoY

    · Advertising revenue = $277 million, up 129% YoY

    · Data licensing and other revenue = $35 million, up 90% YoY

    · Mobile advertising = 81% of revenue

    · International revenue = 33% of revenue

    · Q2 net loss of $145 million (net loss of $158 million of stock-based compensation expense) vs. 2Q13's net loss of $42 million

    · Cash = $2.1 billion

    3. Product Highlights

    · Twitter introduced new product experiences that were built around the World Cup, including real-time scoring, push notifications, event and match timelines, and a voting ballot feature.

    · In addition, Twitter launched new web profiles and the ability to send private messages within Vine.

    4. World Cup Semi-Final - Germany vs. Brail

    · During the Germany-Brazil World Cup game alone: 2 billion tweet impressions off of Twitter plus 4.4 billion impressions on Twitter's owned and operated properties, nearly 6.5 billion total impressions in a single match.

    More: https://blog.twitter.com/2014/insights-into-the-worldcup-conversation-on-twitter

    5. Chief Executive Dick Costolo downplays World Cup effect:

    · "We're quite pleased with the outcome of 16 million new monthly active users sequentially,"

    · "The thing I would note, which needs to be clear, is that the World Cup itself didn't really add to the MAU net adds."

    · "We don't really see that we benefited from new MAU growth because of the World Cup."

    6. Twitter's 271 million MAU (+6.3% QoQ) vs. Facebook's 1,317 million (+3.2% QoQ)

    2Q14 MAU:

    · Twitter = 271 million = 20.6% of Facebook

    2Q14 MAU net addition:

    · Twitter = 16 million = 39.0% of Facebook

    More: http://qz.com/242112/twitter-shares-are-soaring-on-strong-user-and-ad-growth/

    7. Monetization:

    Source: Twitter

    · Twitter's average revenue per user = $1.15.

    · Facebook's average revenue per user = $2.24.

    8. Twitter's MAUs using the API now represents 14% (vs. IPO: 7%)

    According to Quartz, excluding the API accounts, last quarter's MAU growth would be dropped from 6.3% to 3.9% QoQ.

    More: http://qz.com/242483/how-many-of-twitters-active-users-are-actually-human/#/h/91399,1,91400,1,2/

    9. Twitter = Live Event?

    Source:MarketWatch

    10. Twitter's valuation

    Market Cap = $26.2 billion

    · According to Thomson Reuters StarMine, at $50, Twitter's shares were trading at about 200 times forward earnings (versus Facebook's 39.4 times) or nearly 18 times 2015 sales (versus 12 times for Facebook).

    More on www.theforeverportfolio.com

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: TWTR
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