Twitter’s Earnings Call Contained One Glaring Omission For Investors

The social blogging leader may have beaten earnings expectations, but one very important factor was ignored.

Feb. 10, 2021

Yes, we’ve seen Twitter’s (NYSE: TWTR) Q4 figures and they look pretty good:

  • EPS: $0.38 vs. $0.31 expected.
  • Revenue: $1.29 billion vs. $1.19 billion expected.
  • Monetizable daily active users (mDAUs): 192 million vs. 193.5 million expected.

But where on earth is the latest on its upcoming subscription plans?

This ain’t nothing new…

Look, I enjoy scrolling through Twitter and being unnecessarily triggered by the most innocuous comments as much as the next person, but as an investor, the pace of innovation can be tiresome. You’ve all heard the adage: 

“I can’t believe this platform is free.”

Well, it’s not supposed to be much longer, with Twitter confirming once more on Monday that it was looking into subscription services, having purchased the newsletter software company, Revue, in late March. 

Roll onto last night’s earnings call where the only mention of Revue or any planned subscription services we got from CEO Jack Dorsey was: “So nothing new to report on subscriptions today.” Twitter is still very much in the early days of bringing in subscription services, but it has at least confirmed that it is building such a platform, as well as other updates such as tipping, paid consumer-facing features like profile customizations, or an “undo send” option. 

This step is crucial for the company’s growth, especially as it could double its annual revenue by charging just 15% of its users a $10 monthly fee. Subscription revenue is definitely something that Twitter needs to get right, and not just allow to fall by the wayside as it did with Vine all those years ago.

You can read an in-depth analysis from MyWallSt’s Head Analyst on this topic here.

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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here