Twitter Q4 growth & margin analysis

Users

• Moving away from MAU to mDAU (monetisable), a metric that shows growth.
• US 27 million, International 99 million.

ARPU

• ARPU (from ad revenue) USD 0.822 (+26.3%).
• Growth double digit now for 4 quarters.

Growth

• Total revenue +24.2% (+26% currency neutral). Four quarters in a row of 20+ percent growth.
• On a TTM basis, an acceleration to +24.5%.
• US +24.4%, International +24.0%.
• Advertising +22.8%, also 4 quarteres of 20+ percent, but down from 18Q3
• US +24.3%
• International +21.2%
• Data licensing +34.6%. Accelerating now for 4 quarters.
• US +25.4%
• International +59.9%

Margins

• Gross margin 70.5%, highest since 14Q1.
• EBITDA (income from operations) margin 22.8% at record high and 6 quarters of positive margin.
• EBIT margin 10.6%, second positive quarter (also: 17Q4).
• Profit before tax: 5 positive quarters now.
• Net profit: same.

Cash flow

• Raised $1.15b from convertible in 18Q2.
• Liquidity has been rising for many quarters and now stands at $6.24 billion.

Guidance

• Strategic focus on: Health, Conversation, Revenue products (to grow sales teams for large & medium advertisers), Platform investments.
• Revenue 19Q1 at  midpoint a low +12.1%.
• Operating margin at midpoint a low 2.7%.