Research Desk Line-up: GrubHub Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Twitter, Inc. (NYSE: TWTR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TWTR, following the Company's reporting of its second quarter fiscal 2017 results on July 27, 2017. The social-media platform's daily active usage (DAU) jumped 12%, while monthly active usage (MAU) grew 5%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Internet Information Providers industry. Pro-TD has currently selected GrubHub Inc. (NYSE: GRUB) for due-diligence and potential coverage as the Company announced on August 03, 2017, its financial results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on GrubHub when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on TWTR; also brushing on GRUB. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=TWTR

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Earnings Reviewed

For Q2 2017, Twitter's total revenue reached $573.86 million, reflecting a drop of 5% compared to revenue of $601.96 million in Q2 2016. Excluding TellApart, the Company's total revenue in the reported quarter would have decreased 2% on a y-o-y basis. Twitter's sales numbers came in above analysts' expectations of $536.62 million.

For Q2 2017, Twitter's total revenue reached $573.86 million, reflecting a drop of 5% compared to revenue of $601.96 million in Q2 2016. Excluding TellApart, the Company's total revenue would have decreased 2% on a y-o-y basis in the reported quarter. Twitter's sales numbers came in above analysts' expectations of $536.62 million.

For Q2 2017, Twitter's total advertising revenue was $489 million, down 8% on a y-o-y basis. The Company's owned-and-operated (O&O) advertising revenue was $436 million in the reported quarter, reflecting a decline of 9% compared to the year ago same period. Twitter's non-O&O advertising revenue reached $53 million, or 11% of advertising revenue, down 1% on a y-o-y basis. This slight decrease was attributed to significantly lower contribution from TellApart, and offset by strong performance from Twitter Audience Platform (TAP). The Company's Data licensing and other revenue surged 26% to $85 million in Q2 2017, representing 15% of total revenue compared to 11% of total revenue in Q2 2016.

During Q2 2017, Twitter's total GAAP expenses declined 11% on a y-o-y basis to $612 million due to lower Research & Development (R&D) and sales and marketing expenses. The Company's traffic acquisition costs were $26 million, or 49% of non-O&O advertising revenue, in the reported quarter, down 7% on a y-o-y basis. On a non-GAAP basis, Twitter's total expenses declined 5% to $485 million on a y-o-y basis in Q2 2017. The Company's stock-based compensation (SBC) expense was $113 million, less than Twitter's $115 million to $125 million forecasted range. The Company's SBC expense decreased for the fourth consecutive quarter.

Twitter's GAAP loss from operations was $38 million, while interest expense was $26 million and net other expense was $48 million, the latter reflecting a cost method investment impairment charge of $55 million. The Company's GAAP loss before income taxes was $113 million and its GAAP provision for income taxes was $3 million, resulting in a GAAP net loss of $116 million compared to a net loss of $107 million in Q2 2016. The Company's GAAP diluted EPS was a loss of $0.16 per share compared to a loss of $0.15 per share in the prior year's same quarter.

During Q2 2017, Twitter's non-GAAP income before income taxes was $89 million and its non-GAAP provision for income taxes reported under the new method was $33 million, resulting in non-GAAP net income of $56 million and non-GAAP diluted EPS of $0.08 per share and ahead of Wall Street's expectations of $0.05 per share.

Twitter's adjusted EBITDA was $178 million, or 31% of total revenue, for Q2 2017 compared to $175 million, or 29% of total revenue, in Q2 2016. The Company outperformed its forecasted range of $95 million to $115 million of adjusted EBITDA and range of 21% to 21.5% adjusted EBITDA margins due to better-than expected revenue, infrastructure savings, and sales mix, reflecting greater revenue contribution from its data licensing offerings.

Advertising metrics

During Q2 2017, Twitter's total ad engagements increased 95% on a y-o-y basis, driven by a continuing mix shift toward video ad impressions as well as higher click-through rates as a result of better targeting and ad relevance. The Company's average CPE fell 53% on a y-o-y basis, reflecting a higher mix of video ad engagements and lower CPEs across the majority of ad formats compared to the prior year. Twitter's total yield per impression improved on a y-o-y basis, driven both by a mix shift toward higher yield ad formats as well as the higher clickthrough rates across most ad formats.

Engagement and audience

In Q2 2017, Twitter's DAUs grew 12% on a y-o-y basis. Growth continues to be broad based with double-digit y-o-y growth in five of its top 10 markets as well as in the aggregate across all other markets outside of the top 10 countries. The Company's total MAU for the reported quarter were 328 million, an increase of 5% year-over-year.

Balance sheet and statement of cash flows

Twitter ended Q2 2017 with $4.1 billion in cash, cash equivalents, and marketable securities. The Company's GAAP net cash generated from operating activities in the period was $190 million, a decrease from $215 million in the previous year. Twitter's adjusted free cash flow for Q2 2017 was $113 million compared to $154 million in Q2 2016.

Outlook

For Q3 2017, Twitter is forecasting adjusted EBITDA to be in the range of $130 million and $150 million and adjusted EBITDA margin to be between 25% and 26%. The Company expects SBC to be between $100 million and $110 million.

For FY17, Twitter's total non-GAAP expenses are projected to be in the range of down 3% to down 6% on a y-o-y basis. The Company expects SBC to be down 25% to 30% and capital expenditures to be between $300 million and $400 million for the fiscal year 2017.

Stock Performance

On Wednesday, August 09, 2017, Twitter's stock closed the trading session at $16.14, marginally falling 0.06% from its previous closing price of $16.15. A total volume of 7.75 million shares were exchanged during the session. The stock currently has a market cap of $11.72 billion.

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