Twitter: Early Color on qtr (38.59 )
- Wunderlich Securities notes TWTR reported Q2 results of $312M in revenues and $54M in EBITDA, ahead of firm and consensus expectations nd compared to guidance of $270-$280M /$25-$30M. Results were driven by strong user growth, engagement, and monetization. Firm had been positive on the monetization and engagement, but user growth surprised with 271M monthly active users (MAUs) compared to it's 261M estimate and the consensus of 267M. User growth was attributed to product upgrades and engagement to the World Cup audience. Wunderlich is maintaining Hold rating but raising estimates and price target from $35 to $45.
- Topeka Capital notes Twitter delivered an impressive quarter with MAUs that were above firm's Street high estimate and meaningfully above the bear case floated around for several weeks. Advertising growth accelerated for the second consecutive quarter and Adj. EBITDA was 54% above firm's estimate. Full year revenue and EBITDA guidance, which looks easily beatable, was raised and is above consensus. This was a solid beat, in Topeka's view, and should represent a break-out quarter for Twitter, in similar vain to Facebook's (FB) quarter in 2Q13. Maintain Buy and raising price target to $62 from $60.
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RBC Capital notes TWTR reported stronger than expected Q2 P&L results and Usage metrics. Firm is encouraged by the strong growth & are reiterating Outperform Rating, PT up to $65. Fundies: 3rd consecutive qtr of accelerating Rev growth, 124% Y/Y, with EBITDA Margin up 10 pts Y/Y to 17%. The increased '14 outlook implies the highest growth outlook in the sector. Metrics: 1. 271MM MAUs came in ahead of the Street at 265MM, tho Global MAU Y/Y growth again decelerated, tho U.S. MAU Growth accelerated for the first time in a year; 2. Timeline Views also came in ahead of the Street; and engagement levels (Time Line Views per MAU) grew for the 2nd consecutive qtr; and 3. Monetization soared 100% Y/Y.