Making good on a September report from The Information, Twitter (NYSE:TWTR) has launched Fabric, an SDK that gives app developers analytics, distribution, and (via MoPub's mobile ad platform) monetization tools.
The analytics toolkit (Crashlytics) provides data on app performance and crashes. The distribution toolkit (Twitter Kit) allows 3rd-party apps to add embedded tweets, and their users to quickly compose them. It also allows users to sign into apps via their Twitter logins or phone numbers.The monetization toolkit (MoPub Kit) lets an app's ad inventory appear in the MoPub Marketplace.
Aside from boosting MoPub's sales and Twitter's user engagement, Fabric could provide valuable data that would allow Twitter to bolster its own apps and ad sales. CEO Dick Costolo: "It’s not a departure so much as moving beyond Twitter the product and moving into Twitter the company and the platform."
Facebook and Google have been going after developers with their own tool sets, and for similar reasons.
While YELP doesn't provide an explanation in its earnings release for its soft Q4 guidance (revenue expected to be $3M-$4M below consensus), its traffic data arguably helps explain the shortfall.
Average monthly unique visitors rose 19% Y/Y in Q3 to 139M, a slowdown in growth from Q2's 27% and Q1's 30%. Moreover, monthly uniques only rose by 1M Q/Q. Mobile monthly uniques rose 46% Y/Y to 73M, after growing 51% in Q2.
Active local business accounts (a concern going in) were fairly healthy: They rose 51% Y/Y to 86.2K, after growing 55% in Q2. Accounts rose by 7.3K Q/Q. Cumulative reviews rose 41% to 67M; 44% growth was seen in Q2.
GAAP sales/marketing spend rose 60% Y/Y to $54.5M (53% of revenue), a pickup in growth from Q2's 55%. Total costs/expenses rose 55% to $97.9M.
In spite of the light revenue guidance, Yelp has upped its full-year adjusted EBITDA guidance to $69.5M-$70.5M from $67M-$69M.
Infinera (NASDAQ:INFN) guided on its Q3 CC for Q4 revenue of $175M-$185M, above a $160.4M consensus.
The outlook serves as a breath of fresh for the telecom equipment industry, given its recent issues. Infinera bulls have argued for some time the company's strong 100G optical exposure would allow it to outperform.
Rival Ciena (NYSE:CIEN) is ticking higher in response.
Though it beat FQ1 EPS estimates and posted in-line revenue, Lam Research (NASDAQ:LRCX) is guiding for FQ2 revenue of $1.23B (+/- $50M) and EPS of $1.12 (+/- $0.07), unfavorable to a consensus of $1.25B and $1.16. Shipments are expected to total $1.24B (+/- $50M).
Gross margin rose 140 bps Y/Y in FQ1 to 43.9%, and op. margin 420 bps to 14.6%. A GM of 45.5% (+/- 1%) is expected in seasonally strong FQ2.
Shipment growth by geography: U.S. (inc. Intel) +25%, Korea (inc. Samsung/SK Hynix) +16%, Taiwan (inc. TSMC) +21%, Japan +11%, China +8%, SE Asia +11%, Europe +8%.
Mellanox (NASDAQ:MLNX) expects Q4 revenue of $133M-$137M, above a $129.3M consensus.
Q3 results beat estimates on the back of strong InfiniBand hardware demand for HPC deployments (boosted by Intel's Grantley Xeon CPU launch), as well as higher Ethernet product sales. Mellanox expects rising shipments of 40G Ethernet adapters (carrying higher ASPs than 10G adapters) to Web/cloud clients to provide a Q4 lift.
Gross margin rose 110 bps Y/Y to 70.2%. GAAP opex rose 13.5% Y/Y to $82.3M. GM is expected to be in a 69%-70% range in Q4.
AT&T (NYSE:T) now expects full-year revenue to grow 3%-4% Y/Y, down from prior guidance of 5% but in-line with a 3.4% consensus.
Wireless service revenue was down 0.2% Y/Y in Q3, an improvement from Q2's 1.4% drop but below Verizon's 4.8% growth. With equipment sales rising 44.3% thanks to strong Next smartphone upgrade plan adoption, wireless op. margin fell 180 bps to 24.6%.
Wireless postpaid net adds totaled 785K, up from 363K a year ago (aided by tablet adds) but down from Q2's 1.03M; the postpaid base is at 75.1M.
140K prepaid subs were lost; 405K were lost in Q2, and 192K added a year ago. The prepaid base is at 11.2M. "Connected device" net adds totaled 1.275M, with 500K coming from cars; the connected device base is at 18.5M.
Thanks to strong uptake for Mobile Share Value plans, phone-only postpaid ARPU fell 8% Y/Y. Postpaid churn fell 8 bps to 0.99%; total churn rose 5 bps to 1.36%.
Wireline revenue (44% of total revenue) fell 0.4% Y/Y, and segment op. margin fell 180 bps to 8.8%. A 10.5% Y/Y drop in voice connections to 26.2M caused the decline.
U-verse revenue rose 23.8% Y/Y, driving a 3% increase in residential wireline revenue. U-verse broadband and TV net adds respectively totaled 601K and 216K.
$221M was spent on buybacks, up from Q2's $159M but well below some recent quarters. Free cash flow was $3.5B, above net income of $3B.