Morning Report: Twitter’s surprisingly good earnings report could set the stage for Snap’s first public earnings report. It could also improve sentiment among investors regarding still-private social startups.
If you need a longer drive through Twitter’s earnings, I can’t recommend a better tour than Matthew Lynley’s piece on TechCrunch.
That said, I promised you the short version. To wit, here are the three most important numbers from Twitter this morning:
- 9,000,000. During the quarter, Twitter grew its monthly active users by 9 million compared to its sequentially preceding quarter. Twitter now has 328 million monthly active users.
- $33,919,000. That’s the amount of money less that Twitter spent in the first quarter of 2017 on share-based compensation compared to the year-ago first quarter. The total line item still cost Twitter over $100 million in the most recent quarter.
- $3.9 billion. That figure is Twitter’s current cash hoard. The company also reported rising operating and free cash flow on a year-over-year basis in the quarter.
Why those three numbers and not, say, revenue or earnings per share?
In short, those three figures show hope, discipline, and oxygen: the first keeps hope alive for material active user growth at Twitter; the second shows that the company has the discipline needed to rein in a part of its cost structure that had become a running joke; finally, the company’s cash position underscores how secure Twitter is today, operationally. (With rising free cash flow, its cash pile will expand in just one direction.)
Twitter shares are up 10 percent in midday trading. Whether that’s a fair response is up to you.
From the Crunchbase Daily:
EverFi raises $190M for ed-tech
- EverFi, a provider of digital learning tools for schools, has raised $190 million in a new round led by The Rise Fund, and joined by TGP Growth, MainStreet Advisors, Jeff Bezos, and others, Fortune reports. The investment in Washington DC-based EverFi marks one of the largest financings to date for the ed-tech sector.
Unicorns eat a fifth of startup funding
- Unicorns are known for consuming vast quantities of capital. But just how much of total startup funding do they get? A Crunchbase News analysis found that just over 20 percent of all pre-IPO, non-private equity venture capital and debt financing for U.S. startups has gone to unicorns (defined as companies valued founded after 2004 that reach private valuations of $1 billion or more).
Robinhood raises $110M for free stock trading
- Zero-fee stock trading app Robinhood has raised a $110 million Series C round led by DST Global, with participation from new and existing investors, TechCrunch reports. The new financing reportedly values the fast-growing, four-year-old startup at $1.3 billion.
Korea’s TMON raises $115M
- Korea’s Ticket Monster, a mobile e-commerce marketplace also known as TMON, has raised $115 million in a new round backed by Simone Investment Managers and existing investors. The round comes at a lower valuation than TMON’s last fundraise a year ago, which valued the company around $1.5 billion. TMON plans to use the funding primarily to expand into grocery sales.