Twitter reports surprise quarterly user growth, revenue beats

NEW YORK (Reuters) – Twitter Inc on Tuesday posted better-than-expected first-quarter revenue and a surprise rise in the number of monthly active users, a sign that the social media platform may be on a sustainable path after a year of stagnant user growth.

FILE PHOTO: A 3D-printed logo for Twitter is seen in this picture illustration made in Zenica, Bosnia and Herzegovina on January 26, 2016. REUTERS/Dado Ruvic/Illustration/File Photo

The company’s quarterly monthly active user (MAU) count rose 9 million to reach 330 million from previous quarter, while analysts on average had expected 318.8 million, a loss of 2.2 million users, according to IBES data from Refinitiv.

Twitter, which has been focusing on improving the quality of its platform by removing thousands of spam and suspicious accounts, would no longer disclose MAUs from next quarter.

Instead, it plans to only provide the number of “monetizable” daily active users, a metric the company created to measure only users exposed to advertising on a daily basis.

Monetizable daily active users or mDAU rose to 134 million in the first quarter, up 12 percent from a year ago, Twitter said.

For the first quarter of 2019, Twitter’s revenue rose 18 percent from a year ago to $787 million, surpassing Wall Street expectations of $776.1 million.

Revenue was boosted by ad sales that also jumped 18 percent to $679 million. In the United States, ad revenue rose by 26 percent year-on-year, thanks to its video ad formats that continued to show strength in 2019.

However, it forecast current quarter revenue largely below Wall Street targets. Twitter expects revenue to reach between $770 million and $830 million, compared with $819.5 million estimated by analysts polled by Refinitiv.

Twitter also sees more operating costs as it cleans up its platform to minimize abusive user behavior.

“We are now removing 2.5x more Tweets that share personal information and 38 percent of abusive Tweets that are taken down every week are being proactively detected by machine learning models,” Chief Executive Officer Jack Dorsey said in a statement.

Total operating expense including cost of revenue, rose by 18 percent to $693 million from the first quarter a year ago.

Twitter reported quarterly profit of $191 million, or 25 cents a share, compared with $61 million, or 8 cents per share, a year earlier.

Excluding a $124.4 million tax benefit, the company earned 9 cents per share.

Reporting by Angela Moon; Editing by Lisa Shumaker, Bernard Orr

Source link

more recommended stories

  • Snap’s Android fix, gender-changing lens boost users, shares up 9%

    (Reuters) – Snap Inc’s Snapchat on.

  • Facebook-style app launches in Vietnam amid tightening internet rules

    HANOI (Reuters) – A Facebook-style social.

  • Huawei secretly helped North Korea build, maintain wireless network: Washington Post

    A Huawei signage is pictured at.

  • Trump expected to drop in on White House tech meeting with Broadcom, Intel CEOs: sources

    FILE PHOTO: U.S. President Donald Trump.

  • Circuit breakers trip, shares soar as China’s Nasdaq-style bourse debuts

    SHANGHAI (Reuters) – Trading hit a.

  • White House to host meeting with tech executives on Huawei ban: sources

    WASHINGTON (Reuters) – White House economic.

  • Equifax nears deal to pay about $700 million to settle U.S. data breach probes: WSJ

    FILE PHOTO: Credit reporting company Equifax.

  • Four Republican lawmakers ask Trump to move forward with $10 billion Pentagon cloud contract

    WASHINGTON (Reuters) – Four Republican members.

  • Confusion builds over U.S. ban on Chinese surveillance technology

    WASHINGTON (Reuters) – Contractors who buy.

  • Trump tells France’s Macron U.S. concerned with proposed digital services tax

    U.S. President Donald Trump reacts during.

  • SoftBank raises $270 million via Seoul unit for early-stage investments

    FILE PHOTO: The logo of SoftBank.

  • UK’s new PM must take 5G decision on Huawei urgently: committee

    LONDON (Reuters) – The new prime.

  • Russia fines Google for failing to filter search results

    FILE PHOTO: The Google logo is.

  • SoftBank’s Son says Japan lacks investment opportunities, is AI ‘developing country’

    FILE PHOTO: Japan’s SoftBank Group Corp.

  • Amazon under EU antitrust fire over use of merchant data

    BRUSSELS (Reuters) – Amazon became the.

  • Ericsson says on track for 2020 targets as second-quarter profit matches forecasts

    STOCKHOLM (Reuters) – Mobile network gear.

  • U.S. Justice Department asks appeals court to pause antitrust ruling against Qualcomm

    FILE PHOTO: A Qualcomm sign is.

  • Senate to grill Facebook over plans for Libra cryptocurrency

    WASHINGTON/NEW YORK (Reuters) – U.S. lawmakers.

  • Amazon rivals ride on Prime Day marketing as protests unfold

    NEW YORK (Reuters) – Amazon.com Inc’s.

  • Huawei to invest $3.1 billion in Italy but calls for fair policy on 5G: country CEO

    MILAN (Reuters) – China’s Huawei Technologies.

  • Amazon workers in Germany to strike over pay, Verdi union says

    FILE PHOTO: An Amazon sign is.

  • Israel holds 5G mobile network tender, aims for 2020 launch

    JERUSALEM (Reuters) – Israel launched a.

  • China’s Ping An to invest in education startup iTutorGroup

    BEIJING (Reuters) – Ping An Insurance.

  • U.S. regulators approve $5 billion Facebook settlement over privacy issues: source

    (Reuters) – The U.S. Federal Trade.

  • Japan sets up working group on impact of Facebook’s Libra ahead of G7

    TOKYO (Reuters) – Japanese authorities have.

  • Volkswagen zooms ahead in extension of alliance with Ford to electric, automated cars

    , NEW YORK (Reuters) – Ford.

  • Macquarie-backed MEIF 6 Fibre outbids USSL for telecoms firm KCOM

    (Reuters) – Macquarie-backed MEIF 6 Fibre.

  • Trump blasts Bitcoin, Facebook’s Libra, demands they face banking regulations

    WASHINGTON (Reuters) – U.S. President Donald.

  • Twitter back up partially after worldwide outage

    FILE PHOTO – The Twitter logo.

  • French Senate approves tax as U.S. opens probe into digital levy

    PARIS (Reuters) – France’s Senate on.

  • U.S. to probe French plan to tax tech companies

    WASHINGTON (Reuters) – U.S. President Donald.

  • Need quick medical advice in Britain? Ask Alexa

    (Reuters) – Britain’s state-run health service.