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Twitter Q1: sales up 3% to $808M as it swings to a loss on COVID-19, mDAUS hit record 166M

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twitter q1 sales up 3 to 808m as it swings to a loss on covid 19 mdaus hit record 166m
twitter CES 2020 11

Despite traffic for many online properties being at an all-time high, advertising has fallen off a cliff because of the downturn in consumer activity outside the home and the wider economic pressures resulting from the COVID-19 pandemic. And today, Twitter reported quarterly earnings that bore this trend out.

The ad-based social networking and media company said that in Q1 it made $808 million in revenues, actually up 3% on a year ago, with monetizable daily active users (Twitter’s own metric for measuring its audience) grew 24% to 166 million, an all-time high, adding 14 million average mDAUs since Q4 (152 million) and 32 million since Q1 of last year (134 million).

However, operating income for the quarter swung to a loss of $7 million, working out to a net margin of -1% and diluted EPS of -$0.01.

Analysts had expected, on average, to see $775.96 million in revenues on earnings per share of $0.10, so Twitter beat on sales, and missed on earnings. (Note: Twitter’s analyst consensus, provided to journalists, was a little different and painted a more positive picture: it noted average EPS expectations were -$0.02 on sales of $776 million, with expectations of mDAUs at 164 million. Twitter says that its figures are based on non-GAAP numbers, but even on GAAP EPS Twitter’s actual EPS is a beat on consensus of -$0.02.)

Times have really changed whichever way you look at it. In the same quarter a year ago, Twitter reported sales of $787 million, up 18%; net income of $191 million; and diluted EPS of $0.37.

“In this difficult time, Twitter’s purpose is proving more vital than ever,” said CEO Jack Dorsey in a statement. “We are helping the world stay informed, and providing a unique way for people to come together to help or simply entertain and remind one another of our connections. We’ve delivered our strongest ever year over year mDAU growth. Public conversation can help the world learn faster, solve common problems, and realize we’re all in this together. Our task now is to make sure we retain that connection over the long term with the many people new to Twitter.”

The company said that the quarter played out in “two distinct periods”, January through early March, which largely performed as expected, it said, and eearly March through the end of the quarter, “when the pandemic became global.”

None of this should come as a surprise. Twitter itself announced more than a month ago that it was removing its own financial guidance because of the instability of its business due to COVID-19 — noting only that it would be lower than expected:

“While the near-term financial impact of this pandemic is rapidly evolving and difficult to measure, based on current visibility, the company expects Q1 revenue to be down slightly on a year-over-year basis,” it wrote at the time. “Twitter also expects to incur a GAAP operating loss, as reduced expenses resulting from COVID-19 disruption are unlikely to fully offset the revenue impact of the pandemic in Q1.”

It did point out one bright spot, which is that it is picking up many more users because of increased “conversation about COVID-19 as well as ongoing product improvements.” Then, it said that quarter-to-date average total mDAU was around 164 million, up 23% from 134 million in Q1 2019 and up 8% from 152 million in Q4 2019.

Generally, Twitter’s fortunes this quarter are in line with results from Alphabet/Google and Facebook, which also reported earnings this week that reflect the impact of reduced advertising revenues due to fallout from the the public health crisis.

But even without the impact of COVID-19 on Twitter’s primary business of advertising, the company had been facing a tough time leading into the quarter. Like eBay, Twitter has been the subject of activist investor activity pushing for leadership and operational changes to improve growth and profitability. (Coincidentally, the same activist investor, Elliott, has been behind both efforts.) Unlike eBay, however, Twitter has managed to keep its CEO in place — co-founder Jack Dorsey — but has had to concede board seats as part of a wider financing package and strategy to refocus the business. There may be questions on the call today to see if all of that has been put on ice given how other factors are now in play.

One outcome from the deal it had cut with investors was to provide more actionable plans that translated to growth and profit, and on that front at least Twitter is playing ball.

It notes that it has “shifted resources and priorities to increase focus on our revenue products, particularly performance ads beginning with MAP [mobile application promotion ads], with the goal of accelerating our long-term roadmap.” This has included an ad server rebuild that should be finished by the end of Q2 to implement microservices architecture for more efficiency and to make it easier to make changes on the fly. It’s also implementing direct response advertising, also with the aim of adding new features that it can charge advertisers for.

We have increased our focus and the relative prioritization of our revenue products, and will shift and add product and engineering resources as practical to increase our pace of execution on this critical work,” it noted in the earnings letter.

Breaking out some specific numbers, advertising accounted for the lion’s share of sales at $682 million, with data licensing making up much of the remainder. US revenues were $468 million, up 8% year-over-year, while international was at $339 million, down 4%.

No layoffs announced (not yet) but as with others like Spotify, Twitter is putting a hold on hiring. The company had committed to increase headcount this year by at least 20% (alongside its CEO relocating to Africa temporarily and many other optimistic plans) but this is now being slowed down — to what extent, it did not say, but it did note that 2020 total expense growth would now be “considerably less” than the 20% it had projected.

More to come.

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Facebook Faces Yet Another Outage: Platform Encounters Technical Issues Again

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Facebook Problem Again

Uppdated: It seems that today’s issues with Facebook haven’t affected as many users as the last time. A smaller group of people appears to be impacted this time around, which is a relief compared to the larger incident before. Nevertheless, it’s still frustrating for those affected, and hopefully, the issues will be resolved soon by the Facebook team.

Facebook had another problem today (March 20, 2024). According to Downdetector, a website that shows when other websites are not working, many people had trouble using Facebook.

This isn’t the first time Facebook has had issues. Just a little while ago, there was another problem that stopped people from using the site. Today, when people tried to use Facebook, it didn’t work like it should. People couldn’t see their friends’ posts, and sometimes the website wouldn’t even load.

Downdetector, which watches out for problems on websites, showed that lots of people were having trouble with Facebook. People from all over the world said they couldn’t use the site, and they were not happy about it.

When websites like Facebook have problems, it affects a lot of people. It’s not just about not being able to see posts or chat with friends. It can also impact businesses that use Facebook to reach customers.

Since Facebook owns Messenger and Instagram, the problems with Facebook also meant that people had trouble using these apps. It made the situation even more frustrating for many users, who rely on these apps to stay connected with others.

During this recent problem, one thing is obvious: the internet is always changing, and even big websites like Facebook can have problems. While people wait for Facebook to fix the issue, it shows us how easily things online can go wrong. It’s a good reminder that we should have backup plans for staying connected online, just in case something like this happens again.

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We asked ChatGPT what will be Google (GOOG) stock price for 2030

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We asked ChatGPT what will be Google (GOOG) stock price for 2030

Investors who have invested in Alphabet Inc. (NASDAQ: GOOG) stock have reaped significant benefits from the company’s robust financial performance over the last five years. Google’s dominance in the online advertising market has been a key driver of the company’s consistent revenue growth and impressive profit margins.

In addition, Google has expanded its operations into related fields such as cloud computing and artificial intelligence. These areas show great promise as future growth drivers, making them increasingly attractive to investors. Notably, Alphabet’s stock price has been rising due to investor interest in the company’s recent initiatives in the fast-developing field of artificial intelligence (AI), adding generative AI features to Gmail and Google Docs.

However, when it comes to predicting the future pricing of a corporation like Google, there are many factors to consider. With this in mind, Finbold turned to the artificial intelligence tool ChatGPT to suggest a likely pricing range for GOOG stock by 2030. Although the tool was unable to give a definitive price range, it did note the following:

“Over the long term, Google has a track record of strong financial performance and has shown an ability to adapt to changing market conditions. As such, it’s reasonable to expect that Google’s stock price may continue to appreciate over time.”

GOOG stock price prediction

While attempting to estimate the price range of future transactions, it is essential to consider a variety of measures in addition to the AI chat tool, which includes deep learning algorithms and stock market experts.

Finbold collected forecasts provided by CoinPriceForecast, a finance prediction tool that utilizes machine self-learning technology, to anticipate Google stock price by the end of 2030 to compare with ChatGPT’s projection.

According to the most recent long-term estimate, which Finbold obtained on March 20, the price of Google will rise beyond $200 in 2030 and touch $247 by the end of the year, which would indicate a 141% gain from today to the end of the year.

2030 GOOG price prediction: Source: CoinPriceForecast

Google has been assigned a recommendation of ‘strong buy’ by the majority of analysts working on Wall Street for a more near-term time frame. Significantly, 36 analysts of the 48 have recommended a “strong buy,” while seven people have advocated a “buy.” The remaining five analysts had given a ‘hold’ rating.

1679313229 737 We asked ChatGPT what will be Google GOOG stock price
Wall Street GOOG 12-month price prediction: Source: TradingView

The average price projection for Alphabet stock over the last three months has been $125.32; this objective represents a 22.31% upside from its current price. It’s interesting to note that the maximum price forecast for the next year is $160, representing a gain of 56.16% from the stock’s current price of $102.46.

While the outlook for Google stock may be positive, it’s important to keep in mind that some potential challenges and risks could impact its performance, including competition from ChatGPT itself, which could affect Google’s price.


Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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This Apple Watch app brings ChatGPT to your wrist — here’s why you want it

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Apple Watch Series 8

ChatGPT feels like it is everywhere at the moment; the AI-powered tool is rapidly starting to feel like internet connected home devices where you are left wondering if your flower pot really needed Bluetooth. However, after hearing about a new Apple Watch app that brings ChatGPT to your favorite wrist computer, I’m actually convinced this one is worth checking out.

The new app is called watchGPT and as I tipped off already, it gives you access to ChatGPT from your Apple Watch. Now the $10,000 question (or more accurately the $3.99 question, as that is the one-time cost of the app) is why having ChatGPT on your wrist is remotely necessary, so let’s dive into what exactly the app can do.

What can watchGPT do?

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