Twitter’s Q3 2019 earnings were reported recently. To say that the numbers were shocking would be a slight understatement. The Revenues and Earnings per Share (EPS) came in at $824 million and $0.05 respectively. Although the revenue was slightly up year-over-year, analysts predicted the last quarter to be a bit more successful financially (EPS of $0.20 and revenues of $874.03 million). The stock witnessed a hit of almost 20% in pre-market trading.
According to Twitter, the decline in performance was due to revenue product issues, which the company believes brought down year-over-year growth by at least 3 percent. Among the factors Twitter cited for the bad numbers are
A) Bugs that hindered the performance of its Mobile Application Promotion (MAP) product (the bugs have been fixed now though)
B) The disappointing performance of its adtech personalization
C) A slower summer as compared to a year ago
Interestingly, Twitter recorded around 145 million monetizable daily active users (a year-over-year increase of 21 million and up from Q2’s 139 million), exceeding the analysts’ expectations. The net income came in at $37 million.
According to Jack Dorsey, improvements related to relevance and usability are being made. Additionally, the company is focusing on keeping the microblogging platform healthy for all. In the last quarter, over 50% of the tweets containing abusive content were taken down without someone needing to report them first.
CFO Ned Segal claims that Q3’s performance validated the strategy of focusing on long-term growth. He added that the company will continue to focus on its ad products, platform’s health and growth in the number of monetizable daily active users (mDAU). In short, Twitter believes that prioritizing these areas will lead towards better results for the stakeholders in the long run.
Twitter argues that monetizable daily active users are the ones to be kept an eye on because they are a reflection of the company’s performance.
Although Twitter’s largest single market is still the US, its business has continued to pick up internationally. Average US mDAU was 30 million (4 million increase year-over-year). As for the average international mDAU, it peaked at 115 million (17 million increase year-over-year). The average US mDAU in Q2 2019 was 29 million and for international users, the number was 110 million.
Ad revenue witnessed an 8% increase over the last year as well, as it was recorded at $702 million. Data Licensing and other revenue came in at $121 million (a year-over-year growth of 12%). Moreover, US revenue edged out the international revenue by approximately $107 million as it came in at $465 million.
Read next: Several Changes Are Coming to Twitter, including Improved 'Advanced Search' and Full-Size Image Viewer
According to Twitter, the decline in performance was due to revenue product issues, which the company believes brought down year-over-year growth by at least 3 percent. Among the factors Twitter cited for the bad numbers are
A) Bugs that hindered the performance of its Mobile Application Promotion (MAP) product (the bugs have been fixed now though)
B) The disappointing performance of its adtech personalization
C) A slower summer as compared to a year ago
Interestingly, Twitter recorded around 145 million monetizable daily active users (a year-over-year increase of 21 million and up from Q2’s 139 million), exceeding the analysts’ expectations. The net income came in at $37 million.
According to Jack Dorsey, improvements related to relevance and usability are being made. Additionally, the company is focusing on keeping the microblogging platform healthy for all. In the last quarter, over 50% of the tweets containing abusive content were taken down without someone needing to report them first.
- Also read: Is Twitter a ‘Look at This’ social network?
CFO Ned Segal claims that Q3’s performance validated the strategy of focusing on long-term growth. He added that the company will continue to focus on its ad products, platform’s health and growth in the number of monetizable daily active users (mDAU). In short, Twitter believes that prioritizing these areas will lead towards better results for the stakeholders in the long run.
Twitter argues that monetizable daily active users are the ones to be kept an eye on because they are a reflection of the company’s performance.
Although Twitter’s largest single market is still the US, its business has continued to pick up internationally. Average US mDAU was 30 million (4 million increase year-over-year). As for the average international mDAU, it peaked at 115 million (17 million increase year-over-year). The average US mDAU in Q2 2019 was 29 million and for international users, the number was 110 million.
Ad revenue witnessed an 8% increase over the last year as well, as it was recorded at $702 million. Data Licensing and other revenue came in at $121 million (a year-over-year growth of 12%). Moreover, US revenue edged out the international revenue by approximately $107 million as it came in at $465 million.
Read next: Several Changes Are Coming to Twitter, including Improved 'Advanced Search' and Full-Size Image Viewer
