Twitter beat market expectations for the latest quarter revenues as the micro blogging company topped revenues over $1 billion for the first quarter in its history. The company said this was the result of the efforts of the company to make the social media platform more user friendly which has attracted more people to the platform.
The better than expected results saw its shares spar by 14 per cent in early trading on Thursday.
United States continued to be the major market for the Twitter during the quarter as it accounted for the majority of its revenues during the quarter. However the company is set to face scrutiny this year over its measures to tackle misinformation being disseminated from its platform in the run up to the US presidential elections in November.
Using measures such as allowing people to follow topics, the company has continued to entice more people to sign up to its services, it has also tried to remove and prevent abusive content on the platform too. A feature for users to hide certain replies on their tweets was launched last year by Twitter.
The company said that its average monetisable daily active users (mDAU), or those users who view ads while they are logged in through twitter.com or Twitter applications, was boosted because of the focus of the company on providing relevant content and notifications.
In the fourth quarter through December 31, the company noted that its mDAU had risen to 152 million compared to 126 million in the same period a year earlier. That number also came out to be better than market expectations which according to IBES data from Refinitiv, was at 147.5 million.
There was an 11 per cent year on year growth in quarterly revenue for the company at $1.01 billion which was also more than the market expectations of revenue of $996.7 million. The company also reported a 12 per cent year on year growth in total advertising revenue which came in at $885 million.
However for the first quarter, Twitter forecast revenues lower than market expectations as the company said it expected revenues to range between $825 million and $885 million while the Wall Street estimated the number to be at $872.6 million.
The company’s Chief Executive Officer Jack Dorsey said during an earnings call with analysts that one of the top priorities for the company was the rolling out new features at a faster pace.
“The time it takes to go from an idea to shipping something remarkable to customers simply takes too long,” he said.
The net income of the company for the fourth quarter was however lower than market expectations at $119 million, or 15 cents per share. In comparison, the company had reported net income of $255 million in the same period a year earlier.
But there was a 17 per cent growth of in revenues of the company from the United States at $591 million while there was only a 3 per cent growth in revenues globally.
(Adapted from Reuters.com)