Twitter Jack Dorsey beats on earnings posting record $1.29 Billion revenue

 

 

Twitter, Inc. (NYSE: TWTR) today announced financial results for its fourth quarter and fiscal year 2020. “2020 was an extraordinary year for Twitter. We are more proud than ever to serve the public conversation, especially in these unprecedented times,” said Jack Dorsey, Twitter’s and Square CEO.

 

“We reported a 27% year-over-year increase in mDAU in Q4 2020, reaching an average of 192 million. Our product changes to date are promoting healthier conversations for those who use our service, including advertisers and partners, and we are excited about our plans to continue innovating in 2021.”

 

2020 revenue was $3.72 billion, an increase of 7% year over year. 2020 costs and expenses totaled $3.69 billion, an increase of 19% year over year. This resulted in operating income of $27 million and 1% operating margin.

 

This compares to 2019 net income of $1.47 billion, representing a net margin of 42% and diluted EPS of $1.87. Both periods were affected by non-cash, tax related adjustments as described below.

 

In 2020, excluding a deferred tax asset valuation allowance of $1.10 billion and corresponding non-cash income tax expense based primarily on cumulative taxable losses driven primarily by COVID-19, adjusted net loss was $34 million, adjusted net margin was -1%, and adjusted diluted EPS was -$0.04.

 

In 2019, excluding an income tax benefit from the establishment of deferred tax assets related to intra-entity transfers of intangible assets of $1.21 billion, adjusted net income was $259 million, adjusted net margin was 7%, and adjusted diluted EPS was $0.33.

 

Q4 revenue totaled $1.29 billion, an increase of 28% year over year or 27% on a constant currency basis. Advertising revenue totaled $1.15 billion, up 31% year over year or 30% on a constant currency basis. Total ad engagements increased 35% year over year.

 

US revenue totaled $733 million, an increase of 24% year over year. International revenue totaled $556 million, an increase of 34% year over year or 32% on a constant currency basis. Q4 costs and expenses totaled $1.04 billion, an increase of 21% year over year.

 

This resulted in operating income of $252 million and 20% operating margin, compared to operating income of $153 million and 15% operating margin in the same period of the previous year.

 

Net cash provided by operating activities in the quarter was $330 million, compared to $277 million in the same period last year.

 

Capital expenditures totaled $292 million, compared to $150 million in the same period last year, driven by infrastructure investments in data center build-outs to support audience growth and product innovation.

CWEB Analysts view Twitter, Inc. (NYSE: TWTR) as a short and long term growth and a great addition to your investment portfolio with an upward momentum of  $130 by 2021


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