Published On: Wed, May 9th, 2018

Twitter beats expectations with $665M in income amid the turnaround hopes

It looks like Twitter, a oft-beleaguered amicable network that’s still value some-more than Snap, will still reason that standing for a tiny longer after delivering a stronger-than-expected entertain this morning.

Twitter’s monthly active users hardly grew — yet it did, indeed, grow — by around 3% worldwide year-over-year, and is now during around 336 million monthly active users. That isn’t crazy expansion or distance in a range of how vast Facebook is, though it still means that Twitter isn’t losing those users. It’s going to be re-entering a vicious time streamer into another year of elections. All this is going to be vicious to a story as it tries to sell a turnaround on Wall Street, where it during one indicate was value some-more than double it is now.

The association kick out Wall Street’s expectations by delivering $655 million in revenue, heading to a tiny spike in a batch this morning by about 5%. Here’s a final scorecard:

  • Monthly active users: 336 million, adult 3% year-over-year and compared to around 334 million expected
  • U.S. MAUs: 69 million, about prosaic year-over-year
  • International MAUs: 267 million, adult 4% year-over-year
  • Q1 Revenue: $665 million, compared to $608 million Wall Street estimates and adult 21% year-over-year
  • Q1 Earnings: 16 cents per share, compared to 12 cents per share estimates

While all of this looks flattering strong, Twitter had a flattering rough though rather certain 2017 on Wall Street toward a behind finish of a year. It’s been creation poignant moves to try to quell abuse and nuisance and has indeed been tweaking a product in some ways, even if they don’t quite feel earth-shattering. Expanding a impression count from 140 to 280 characters competence not seem like a lot, though it does restrict some-more information into that tiny space, and any bit of rendezvous helps Twitter in a prolonged run means itself.

Late final year, Twitter upheld Snap in marketplace cap. While this is mostly symbolic, it’s kind of a image of a vigour both networks are underneath to uncover that advertisers are indeed meddlesome in a height over Facebook. Both companies are flattering flighty and have to sell Wall Street on expansion stories. Twitter has mostly been slammed for being formidable to use and carrying a lot of problems associated to nuisance and abuse, and it’s spent most of a final year perplexing to repair those problems.

(Interestingly, Twitter’s stock-based remuneration responsibility — an responsibility that’s been hounding Twitter for some time — increasingly seems to be removing underneath control. It’s down to around $73 million in a initial quarter, compared to $117 million in a initial entertain final year.)

While it won’t be a distance of Facebook, Twitter has to position itself as a singular mark where advertisers can strech an assembly that is in a opposite kind of behavioral mode than they are on Facebook. Twitter has sought to specialize in a live feed of information, either that’s perplexing to rejigger a timeline to aspect adult critical information or investing some-more in video. That, theoretically, means that Twitter could sell itself as a height with a aloft turn of rendezvous in certain activities — something that Snap has finished in sequence to position itself in a certain approach for Wall Street.

All this has given Twitter a approach to uncover that while a income is not a scale of Facebook, it’s a opposite kind of revenue, and one that competence have a lot of value for advertisers. If it can do that, and continue to scale adult a user bottom over time and afterwards pierce into poignant news events like an elections cycle, it competence be means to collect adult some-more and some-more advertisers. There was a indicate when we were articulate about how a promotion income had totally stalled and was headed into a tailspin, though it looks like it’s indeed gotten that underneath control.

That’s also because Twitter loves to uncover this draft and speak about it on a quarterly gain releases, that has usually one of a dual compulsory axes in sequence to be a chart. The draft shows year-over-year daily active user growth, though a association doesn’t like to offer some kind of basement for how many of a users are indeed super-active DAUs. But, nonetheless, here it is in all a glory:

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