Breaking Down Twitter’s First Earnings Report

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Feb. 5 (Bloomberg) –- Bloomberg’s Julie Hyman, Cory Johnson, Cristina Alesci and Adam Johnson discuss Twitter earnings on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Is out.

It looks like they made two cents.

Julie hyman, i know you have done a lot of work on twitter.

Just looking at this number, looks like revenue is more than expected.

Even the fact they made money is surprising.

I don't think there were any estimates for twitter to make a profit in the quarter.

I am glancing at the release, the revenue you mentioned, more than doubling.

In the most recent quarter, full-year revenue at 66 $5 million.

Pretty much doubling in size.

What you want to look at are some of the numbers in terms of users and how they are translating them into profitability.

What is the monetization, advertising.

By the way, it looks like it is working well because if i am reading, cory johnson, feel free to comment, it looks like twitter is effectively doubling the revenue estimates versus what the street is forecasting for the full year.

The street is at 640 million, it looks like twitter is saying 1.2 billion dollars.

That is more than double.

They are saying that.

As i look at my motto for expectations, about 640. in terms of revenue, we will look at the earnings and see what that is all about.

There is often an assumption of stock compensation expense right after a company goes public.

So the eps number, the gap can be all over the place.

But the corridor, 40%, 41% of the shares were short.

You can expect extreme volatility.

This is a deal, an ipo that is so closely scrutinized, you can expect they wanted to keep expectations as low as possible.

It will also say as a look at the user number, 241 million, that is up from 232 when they went public.

That is the slowest growth rate the company has ever seen.

Before that it had been 6.4%. a modest increase.

It seems like they really focused on monetization over user growth.

That has big the big thing.

Now they have to shift gears and make it easier and more intuitive for people to use twitter at the end of the day.

They spend the quarter really rolling out a lot of dynamic ad products.

Let's hold off on the notion this is monetization.

Stock compensation right after an ipo is such a weird bogey.

We don't know how much that would have contributed.

Operating earnings will be more interesting.

That will tell us the problems.

One more number, i don't know if you had a chance to see, edward -- advertising revenue, talking about revenue, per thousand timeline used, $1.49 in the fourth quarter.

They mean $1.49. that is a huge increase.

That is a tricky metric.

It is not 1 wall st has fully appreciated or adopted in their model.

It is an indication they did some of the quarter -- let me give you a comparison.

$.85 one year ago for revenue per thousand users.

They are making more money from every user, dramatically so.

At sign psych the take away.

You can see the volatility at the bottom of the screen.

-- that looks like the take away you can see the volatility at the bottom of the screen.

All right, cory johnson, thanks for walking us through that one.

All right, coming up, the

This text has been automatically generated. It may not be 100% accurate.

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