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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.”

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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.

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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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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.

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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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Discord goes all in with AI: chatbots, automods, whiteboards and more

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Discord goes all in with AI: chatbots, automods, whiteboards and more

AI is the future, at least over on Discord.

The messaging application originally made for gamers has become Gen Z’s favorite online hangout destination of choice, and now it’s rolling out a number of features powered by artificial intelligence.

In an announcement(Opens in a new tab) on Thursday, Discord shared what’s coming to the platform soon: an AI chatbot, an automated AI moderator, a conversation summarizer, an avatar remixer, and a whiteboard. Some of these features begin rolling out today, March 9. Others will launch in the coming weeks and months.

While AI has jumped into the mainstream thanks to the popularity of OpenAI’s ChatGPT chatbot, Discord has had an active AI community for quite a while now. According to the company, third-party AI apps already on the platform already have more than 30 million monthly users. Nearly 3 million servers on Discord have some AI element integrated into the community.

In fact, the biggest community on Discord is Midjourney, a text-to-image AI project which allows users to generate art from right within the server. Discord says Midjourney’s server has more than 13 million members.

So, with AI being such an integral part of Discord already, it seemed like only a matter of time before Discord itself started bringing AI directly into the platform.

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AutoMod AI
Credit: Discord

The first feature coming to some Discord servers as soon as today is AutoMod AI. Discord already has an AutoMod feature, which basically automatically moderates rooms for admins based on the rules of the server. Discord has now integrated OpenAI-powered AI into AutoMod, allowing it to search the server and contact moderators when it thinks rules are possibly being broken. According to Discord, AutoMod AI can also consider the context of a conversation so, for example, users don’t get penalized for posts that are misconstrued.

Clyde is a bot that Discord users may already be familiar with, and starting next week, Clyde is getting an AI upgrade. Currently, the Clyde bot provides information, such as server error messages, and also responds to timeout or ban requests from users and mods. However, that’s pretty much all Clyde was able to do. Until now.

Clyde chatbot

Clyde
Credit: Discord

Clyde will now be able to answer all sorts of questions from users, much like OpenAI’s ChatGPT chatbot. Users simply have to type “@Clyde” followed by their prompt. Clyde will be able to pull up information and also help find specific emojis or GIFs based on a user’s description.

Another AI feature coming to Discord next week is Conversation Summaries. Again, the name is fairly descriptive of what it does. With users all over the world, many Discord channels are always moving regardless of time of day. Conversation Summaries will allow users to catch up on what they missed on a Discover Server. The AI-powered feature will “bundle” chats into topics so users can easily read up on what they find most interesting.

Conversation Summaries

Conversation Summaries
Credit: Discord

Starting today, developers can start playing with Avatar Remix, an open-source Discord app that integrates AI art into the messaging app. Avatar Remix allows users to take a fellow user’s avatar and change it up “using the power of generative image models.” What does that mean? In the demo that Discord showed Mashable, a user was able to add a party hat or a mustache to a friend’s avatar by simply mentioning their username and describing what changes they’d like to make.

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Avatar Remix

Avatar Remix
Credit: Discord

The company is also launching an “AI incubator,” offering support for developers creating AI-powered apps on Discord.

Finally, Discord revealed a feature that’s coming soon that has long been requested by the Discord community: a whiteboard. But, of course, this won’t be just any collaborative whiteboard feature. It’s going to be AI-powered, allowing users to collaborate in generating AI art and more.

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