- Twitter Inc (NYSE:TWTR) reported fourth-quarter FY21 revenue growth of 23% year-on-year to $1.57 billion below the consensus of $1.58 billion.
- Advertising revenue totaled $1.41 billion, up 24% Y/Y, Total ad engagements decreased 12% Y/Y.
- Cost per engagement (CPE) increased 39% Y/Y.
- The average mDAU was 217 million, compared to 192 million in Q4 2020.
- Average US mDAU was 38 million for Q4, compared to 37 million last year. Average international mDAU was 179 million for Q4, compared to 155 million last year and 174 million in Q3.
- US revenue totaled $885 million, an increase of 21%Y/Y, while International revenue totaled $683 million, an increase of 26% Y/Y.
- The operating margin contracted 900 bps to 11% as expenses shot up 35% Y/Y.
- EPS of $0.33 missed the consensus of $0.35.
- Twitter used $528 million in operating cash flow and held $6.39 billion in cash and equivalents.
- Share Buyback: The board approved a new $4 billion share repurchase program.
- Outlook: Twitter sees Q1 FY22 revenue of $1.17 billion and $1.27 billion versus the consensus of $1.26 billion.
- "Twitter had a solid fourth quarter to finish 2021, with over $5 billion in annual revenue, up 37% for the year," said Ned Segal, Twitter's CFO. "There are no changes to our goals of 315 million average mDAU in Q4 2023 and $7.5 billion or more revenue in 2023. Our increased focus on performance ads and the SMB opportunity after the sale of MoPub positions us even better for 2022 and beyond."
- Price Action: TWTR shares traded higher by 4% at $39.31 in the premarket on the last check Thursday.
