April 29, 2014

Twitter Support Before Twitter’s Q1-2014 Earnings

Some Twitter support before its earnings (just in case earnings are not up to expectations).

House of Twitter Cards by David Cheng 
Twitter has unbound potential in monetizing the power and influence it has in traditional media. It’s Twitter’s power—not its money—that buys this type of free publicity:

Twitter better start delivering on this “unbound potential” this quarter.

Why does all this matter for Twitter? It’s because Twitter makes almost all its money on mobile. Looking at the two companies, while Facebook ($7.8 billion) towers over Twitter ($664 million) in total revenue, more than 75% of Twitter’s ad revenue last quarter comes from their mobile platform compared to Facebook at 53% of ad revenue. Twitter’s mobile ARPU is at $0.90 in Q4 2013 (up from $0.61 in Q3 2013), meaning there is tremendous upside once you factor in app downloads from Twitter Cards. While Twitter may not have the Facebook’s social graph or its platform, Twitter does have data centers filled with who you follow and your Twitter activity—AKA your valuable interest graph.

Will this “tremendous upside” start showing up in the Q1-2014 earnings report?

Twitter bankers and investors are hoping so.

Tags: twitter q1-2014 earnings, twitter investors, twtr q1-2014 earnings, twitter bankers, house of twitter cards