Twitter Q3 2016 Earnings Call: 6 Things You Should Know

On October 27th, Twitter held their Q3 2016 earnings call.  Here are the top 6 things you should know:

1. Slight Increase in Revenue: Total revenue was up only 8% YoY and 2% sequentially to $616MM.  Advertising made up 88% of the total at $545MM.  Data Licensing and Other brought in $71MM.

twitter-revenue-q3-2016

2. Still Unprofitable: Net Income/Loss for the quarter was -$103MM. This was an improvement over the -$132MM from last year’s time frame and the -$107MM from last quarter.  They expect GAAP profitability in 2017.

twitter-net-income-loss-q3-2016

3. Worldwide Usage Flat: There were 317MM monthly active users (MAUs), which was +3.3% YoY and +1.3% sequentially.

twitter-mau-q3-2016

4. 80% of WW Twitter Users Come From Outside US: In Q3 67MM of MAUs came from the US, while 250MM were from abroad. 

twitter-mau-us-v-international-q3-2016

5. Live Streaming a Success: The audience for the first five NFL Thursday Night Football games grew on a week-over-week basis.  Last three games were seen by more than 3MM viewers.  The 2nd and 3rd presidential debates averaged 3.3MM viewers and almost 3B tweet impressions.

Recently they launched 3 Bloomberg market shows, The Starters from the NBA and a new show called The Rally.

screen-shot-2016-10-27-at-12-11-56-pm

6. Shutting Down Vine Video Service – 9% Jobs Cuts: The company will trim 9%, or roughly 35o, of the 3,910 employees.  This will be mainly in Sales, Partnerships and Marketing.  They expect to incur $10-20MM of cash expenditures as a result of the workforce – mostly severance costs – and $5-10MM of non-cash expenditures, consisting primarily of stock-based compensation expense.

Vine was an app that allowed users to share short, 6 second video clips but competition from Instagram, Facebook and Snapchat proved too much.  The company said they will wind down the service over the next few months and allow people to download their videos.

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