Twitter Q4 Earnings Report Preview: What To Look For

Adam Hejl /
2022/02/09 6:06 am EST

Social network Twitter (NYSE:TWTR) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter Twitter reported revenues of $1.28 billion, up 37.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter. Daily active users, a key metric for the company, were up 24 million year over year to 211 million (in line with analyst expectations).

Is Twitter buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Twitter's revenue to grow 22.1% year on year to $1.57 billion, slowing down from the 27.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $0.38 per share.

Twitter Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 5.47%.

Looking at Twitter's peers in the social networking segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Snap (NYSE:SNAP) delivered top-line growth of 42.4% year on year, beating analyst estimates by 8.05% and Meta (NASDAQ:FB) reported revenues up 19.9% year on year, exceeding estimates by 0.68%. Snap traded up 58% on results after being down 23% during the regular session, Meta was down 26.3% on weak user growth and guidance. Read our full analysis of Snap's results here and Meta's results here.

The technology sell-off has been putting pressure on stocks since November and while some of the social networking stocks have fared somewhat better, they have not been spared, with share price declining 12.7% over the last month. Twitter is down 10.5% during the same time, and is heading into the earnings with analyst price target of $54.9, compared to share price of $36.37.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.