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Twitter posted earnings above badysts' estimates on Friday and Friday, helping to boost share prices by more than 4% in pre-sale transactions.
Here are the key figures for Twitter for its second quarter of 2019:
- Earnings per share: 20 cents, adjusted, vs 19 cents per share expected, by survey of Refinitiv badysts
- Returned: $ 841 million against $ 829.1 million expected from Refinitiv
- Average Daily Monetizable Active Users (mDAU): 139 million
Revenues increased by 18% over the previous year, the company said, due to organic growth. Twitter reported reaching an average of 139 million daily monetizable users in the second quarter, an increase of 14% over the previous year. National mAUs reached € 29 million in the quarter, an increase of 10% over the previous year. On the international front, the average UAHD reached 110 million euros during the quarter, an increase of 15% compared to the previous year.
Twitter provided guidance for the third quarter, stating that it was expecting a turnover of between $ 815 and $ 875 million. Operating profit is expected to be between $ 45 million and $ 80 million. For the full year, Twitter reiterated that it expected that operating expenses under GAAP would increase by approximately 20% year-over-year. because it invested in top priorities such as health and conversation.
The previous quarter was the last one for which Twitter said it would report monthly active users (MAU) as it moves to a new metric that, according to the company, would better reflect its audience. The new figure, which Twitter calls daily active monetizable users (mDAU), includes "Twitter users who log in and access Twitter every day via Twitter.com or our Twitter apps that can serve ads," the company said.
Twitter said that mDAUs are not comparable to information provided by other social media companies, which generally share "a broader measure that includes people who do not see advertising". The figure reported by mDAU from Twitter is significantly lower than the DAU indicators of his peers, such as Snap and Facebook. Twitter reported 134 million average uses in the first quarter. Snap announced 203 million SAD in its latest earnings report and Facebook, 1.59 billion SAD.
Twitter's decision to stop disclosing the MAUs came after the company missed badysts' estimates of this metric for two consecutive quarters. Twitter attributed the decline to adjustments made "to prioritize the health of the platform", to the general data protection regulation of the European Union and to a purge of "locked" accounts intended to eliminate robots, among other factors.
Twitter said its total advertising revenue was $ 727 million in the quarter, up 21% or 23% at constant currency. Growth in advertising revenues in the United States increased 29% from 26% in the previous quarter, Twitter reported.
The company has tried to focus on conversations rather than engagement measures such as tastes and retweets to enhance the experience of its platform. The company has created an application prototype called "twttr" to test new ideas. Last quarter, CEO Jack Dorsey said the results so far were promising, but did not provide time to wait for a broader version of its features. Twitter started a new design of its website earlier this month.
In its letter to shareholders, Twitter explained that it had simplified the reading of its policies and implemented new features in its design to improve the experience, including testing labeled responses that indicate the original author of a tweet. The company said it has seen a drop of 18% in "reports of spammy or suspicious content in all pages of Tweet details, which show the answers to all Tweet given on our service". Twitter has credited the reduction of its updated machine learning models.
By the close of Thursday, Twitter's stock had risen more than 32% since the beginning of the year.
This story is growing. Come back for updates.
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