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Twitter gets a surprise beat in Q3 on sales of $590M and EPS of $0.10

Twitter gets a surprise beat in Q3 on sales of $590M and EPS of $0.10
From TechCrunch - October 26, 2017

Twitter reported its earnings this morning for Q3, and watchers of the company, used to seeing declines across the board, got an unexpected piece of news: the social media platform reported revenues of $590 million on adjusted earnings per share of $0.10.

Total monthly active users for Q3 were 330 million, up 4 million from the prior quarter and an increase of 4% year-over-year. US MAUs grew 1 million sequentially to 69 million, while international MAUs grew 3 million sequentially to 261 million, the company said.

But, notably, the company also slipped in some bad news about MAUs, too: it had been overstating the numbers since Q4 2014 due to a flaw in Digits, and SDK that was part of its now-divested Fabric platform, and how it reported third-party access:

We discovered that since the fourth quarter of 2014 we had included users of certain third-party applications as Twitter MAUs that should not have been considered MAUs, Twitter noted. These third-party applications used Digits, a software development kit of our now-divested Fabric platform, that allowed third-party applications to send authentication messages via SMS through our systems, which did not relate to activity on the Twitter platform. The table below presents the impact for the periods beginning in the fourth quarter of 2016. Due to our data retention policies, we do not have data to reconcile periods prior to the fourth quarter of 2016, but our estimates suggest the prior period adjustments are smaller than those in the fourth quarter of 2016.

The Q3 revenues were still a decline over a year ago of about four percent compared to a year ago, when Twitter reported EPS of $0.09 on revenues of $615.93 million. But it still appears to have been a surprise turn of events as far as analysts were concerned: they collectively wereexpecting EPS of $0.07 on revenues of $586.73 million.

Other notable metrics for today are that daily active users are up 14 percent over last year, and monthly active users are up four percent, with the absolute increase working out to 4 million users.

Advertising revenue totaled $503 million, a decrease of 8% year-over-year, with data licensing accounting for $87 million, up 22 percent.

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