Here is my take on the just announced quarter:
Twitter beat top-line consensus sales forecasts by about +2% (to $787 million). The rate of increase in revenues was a bit over +18%. (The increase in ad sales corresponded to the sales number.) Importantly, the deterioration of price per ad impression seems to have been halted.
Twitter's usage (mDAU) in the first quarter came in at 134 million users - a net gain of eight million users (which was far above expectations) was, as expected skewed towards international gainers. This (user metrics) is the single most important factor in the release and suggests that Twitter's shares will likely move higher with such solid engagement figures. Note: MAU will no longer be reported after this quarter - and they rose a very healthy and surprisingly strong +9 million to 330 million users.
Adjusted EBITDA at $291 million dramatically exceeded consensus of $248 million. Margins came in at 37%.
Adjusted EPS of $0.25/share benefited from a tax credit
Second quarter guidance of revenues ($770 million to $830 million) compares to consensus of $817 million. And forecasts for GAAP operating income of $35-$70 million compares to consensus of $61 million. Expense (+20%) and capital investment ($550-$600 million) were both in line with expectations.