Twitter: NewFronts Bonanza

Twitter: NewFronts Bonanza

Summary Twitter announced 30+ new partnerships at NewFronts, roughly doubling the total from last year. The company is set to beat analyst estimates in out years that aren't factoring in the new partnerships. Source: Ad Age Double The Shows Twitter announced new shows with Disney (DIS) including @SCLive from ESPN, NBC Universal owned by Comcast Corp. (CMCSA) and Viacom (VIA). In total, the social-media site announced 30 deals with content partners that nearly doubled the 16 publisher partnerships from last year. Revenue Boost The prospects of Twitter turned around in 2017 as the company announced increasingly more and more live-video content deals. Twitter has exceeded revenue estimates by at least $35 million in all but one quarter since the start of 2017. Source: Twitter ESPN will eventually start monetizing this account and the momentum along with the other 30 partnerships will boost revenues throughout the year and especially in 2019. Analysts will have to boost revenue estimates for the out years as these new shows start on the social-media platform. Disclosure: I am/we are long TWTR. Nothing in this article should be taken as a solicitation to purchase or sell securities.

Twitter announces new video partnerships with NBCUniversal and ESPN
Google and Samsung partner to ensure RCS works between their messaging apps on all devices
Facebook plans voter drive, partners with Democratic/Republican Institutes

Summary

Twitter announced 30+ new partnerships at NewFronts, roughly doubling the total from last year.

The live-video boost has corresponded with improved revenue trends.

The company is set to beat analyst estimates in out years that aren’t factoring in the new partnerships.

Back at the 2017 NewFronts, Twitter (TWTR) made their initial pitch to digital ad buyers. A slew of new live video shows streaming on the platform was one of the primary signals that the social-media site had turned the corner helping build my investment thesis. The host of new shows announced at the 2018 event ushers in the next level of growth that will push the stock higher.

Source: Ad Age

Double The Shows

Twitter announced new shows with Disney (DIS) including @SCLive from ESPN, NBC Universal owned by Comcast Corp. (CMCSA) and Viacom (VIA). In total, the social-media site announced 30 deals with content partners that nearly doubled the 16 publisher partnerships from last year.

In many cases, the partnerships are vastly larger than the ones from last year. The NBC Universal deal includes live video and clips from units, including NBC, NBC News, MSNBC, CNBC, Telemundo, Today and E! News. In essence, this one partner is the equivalent of seven partners. The deals with Disney and Viacom are also similarly large with multiple units involved and endless possibilities.

The real key is the number of hours streamed on the platform and the quality of the content.

In the latest quarter, total premium shows grew with 1,300 live-streamed events. In the prior-year Q1 before the first NewFronts event attended by Twitter, the company only reported 800 hours on 450 live-streamed events.

Source: Twitter Q1’18 shareholder letter

In the course of a year, Twitter tripled the number of events on the platform hence making the revenue gains in 2017 as highly…

Pin It on Pinterest

Shares
Share This