Shyam Patil of Wedbush commented in a note on Monday that Twitter Inc TWTR will likely report upside to revenue and earnings when it reports its fourth-quarter results on Thursday after market close.
Patil expects fourth-quarter revenue to total $450.5 million, on advertising revenue of $404.9 million and data licensing revenue of $45.6 million. EBITDA is estimated to be $105.2 million and a non-GAAP earnings per share estimate stands at $0.06.
However, Patil notes that while revenue and profitability are important, the focus remains on user growth along with engagement. The analyst expects Twitter to report its total monthly active user base has risen 19 percent year-over-year to 287 million (versus a 22 percent year-over-year gain in the third quarter) with 64 million users in the U.S. and 223 million users internationally.
“While we expect to see a positive bias to 4Q revenue and EBITDA, concerns remain around user growth and engagement following the softness in 3Q and 4Q implied guidance for monthly active user net adds of three to 10 million,” Patil wrote.
Shares remain Neutral rated with a $40 price target.
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