Key Takeaways from Twitter Q4 2021 earnings report

Here are some quick hilights on the Q4 FY 2021 earnings, the report also shares the standing of Twitter in terms of revenue generated and priorities for 2022.

As per the Q4 2021 earnings results, Twitter is on its way to the long-term 2023 goals, which include delivering at least 315M mDAU in Q4 2023 and $7.5B+ in full-year revenue. As part of this, Twitter has shared new details on some lead indicators for future mDAU growth and efforts to encourage people who frequently consume Twitter content on a logged-out basis to create an account and log in.

Twitter announced a new 4 Bn USD share repurchase authorization, of which half ($2B) will be executed through an accelerated share repurchase program (ASR).

Twitter Q4 and Full Year 2021 Earnings Highlights

• Twitter doubled development velocity by end of 2023, delivering at least 315M mDAU in Q4 2023, delivering 7.5 Bn USD or more in revenue for FY 2023
• Increased development velocity across consumer and revenue products with significant investments in data and machine learning (ML)
• Made progress on consumer product roadmap – added 25M mDAU
• Saw significant improvements in lead indicators for future mDAU growth, including: 25% YoY increase in the number of people who come to Twitter every day to create a new account or reactive an existing one; and 35% YoY increase in daily sign-ups
• Increased revenue by 37% YoY
• Q4 revenue reached 1.57 Bn USD, with ad revenue of 1.41 Bn USD, both up 22% YoY, driven by ongoing revenue product improvements, solid sales execution, and a broad, continued increase in advertiser demand
• US revenue was 885 Mn USD, an increase of 21%
• Total international revenue was 683 Mn USD, an increase of 23% or 26% on a constant currency basis
• Japan, the second largest market, reported revenue of 194 Mn USD, up 10%
• Total advertising revenue was 1.41 Bn USD, an increase of 22%, or 24% on a constant currency basis
• Data licensing and other revenue totaled 154 Mn USD, an increase of 15%
• The revenue impact associated with App Tracking Transparency (ATT) in Q4 remained modest (an ongoing modest impact incorporated in Q1 guidance)

Also Read: Twitter launches Toolbox for enhanced experience with self-serve tools

In 2022, Twitter expects FY revenue to grow in the low to mid 20% range vs. 2021, excluding MoPub and MoPub Acquire, with performance and revenue growing faster than brand, and mDAU growth accelerating in the US and International markets over the course of the year

Expect total costs and expenses to grow in the mid 20% range in 2022 vs. 2021 (excluding one-time items) Expenses in 2022 are expected to ramp in absolute dollars over the course of the year, with expected headcount growth of approximately 20% and a focus on R&D.

Outlook

For Q1’22, Twitter expects:

• Total revenue to be between $1.17B - $1.27B
• GAAP operating loss to be between $225M - $175M

For FY22, Twitter expects:

• SBC expense to be between $900M - $925M
• Capital expenditures to be between $900M - $950M

Executive Commentary

Parag Agrawal, CEO

“Our strong 2021 performance positions us to improve execution and deliver on our 2023 goals. We are more focused and better organized to deliver improved personalization and selection for our audience, partners, and advertisers."

Ned Segal, CFO

“Twitter had a solid fourth quarter to finish 2021, with over $5 billion in annual revenue, up 37% for the year. There are no changes to our goals of 315 million average mDAU in Q4 2023 and $7.5 billion or more revenue in 2023. Our increased focus on performance ads and the SMB opportunity after the sale of MoPub positions us even better for 2022 and beyond.”