From: Tazia Smith
Sent: 4/29/2014 4:55:26 PM
To: jeevacation@gmail.com
CC: Vinit Sahni Nay Guptil lit pm); Paul Morris
OMENS; Vahe Stepanian
Subject: Twitter down -9% on earnings, lowest price since IPO. Earnings call to begin shortly, lock-up expiry on Tuesday(5/6)
(CI
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classification: confidential
Jeffrey -
As you know, you own 1000 shares of TWTR at S26 (+512.7k)
TWTR shares are at their lowest level since the stock's IPO (presently $38.70, vs. a close of $42.62)
Conference call begins at 5pm ET
Twitter reported a better-than-expected top and bottom line for Q1, however, Monthly Active user (MAU)
growth was shy of whisper expectations. Investors are focused on valuation (still high at current stock
price - DB's price target of S6S implies 6Sx EV/EBITDA vs. Facebook which is —12x), and stock action has
reflected the forthcoming headwind: -474mm shares come out of 180 lock-up as of next Tuesday, 5/6
(includes Execs and early stage PE).
Top and bottom line beat (like last quarter) but user growth is just inline with consensus ests and
disappoint vs expectations:
Revenues Better - $2SOmm vs S241.5mm
Earnings Better - $0.00 vs ($0.03)
But audience growth (Monthly Active Users) just inline - disappointing vs. whisper
MAu:
Total 255M vs SA 256.8M and 241M in Q4 - represents y/y growth of +25%
Mobile 198M vs 184M in Q4
us S7M vs SA 57.014 and S4M in Q4
International 198M vs SA 200.0m and 187M in Q4
(source: Streetaccount.com)
Guidance inline/better:
02 Guidance inline EBIDGA of 535-30mm vs S28mm
FY Guidance EBIDA of 5180mm-205mm vs prior 5150-180mm (cons 181mm)
TwTR Intra-Day/Aftermarket Price History
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TWTR 6mo Price History
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Tazia Smith
Director I Key Client Partners - US
DB Securities Inc
Deutsche Asset & wealth Management
345 Park Avenue, 10154-0004 New York, NY, USA
CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0 101815
CONFIDENTIAL SDNY_GM_00247999
EFTA01447239