For the quarter, Twitter was projected to add five million new users, but the company raised eyebrows by reporting six million additions instead. The business's quarterly revenue was up 21.3% compared to the same quarter a year ago.
Despite high-profile users like the US President Donald Trump, Twitter has struggled to attract people. The company announced today that it has beat forecasts for Q1 2018, helped by a 53% jump in worldwide revenue, which was led by strength in the Asia-Pacific region.
Twitter experienced healthy growth during the last 12 months, largely driven by the maturation of its video ad suite, with the company posting Q1 revenues of $665m, up 21% year-over-year. The consensus earnings estimate was US$0.11 per share on revenue of $609.9mln, according to Earnings Whisper. The strong revenue and user growth also indicates that escalating concerns about social media companies' data collection practices so far haven't eroded Twitter's business.
"They intend to spend more on privacy and security, so some of the headcount growth was expected", Wedbush Securities analyst Michael Pachter said.
Twitter beat monthly active user (MAU) projections, hitting 336 million at a growth rate of 6% year over year.
Shares of Twitter closed the previous trading session at 31.29 up +0.82 2.69% with 12290906 shares trading hands.
Twitter reported earnings before the bell on Wednesday. Twitter is also becoming more efficient with its monetization.
The result meant the second quarterly profit for the company.
"We grew our audience and engagement. and continued our work to make it easier to follow topics, interests, and events on Twitter", Dorsey said in the earnings release. In the first quarter, the company said it removed more than 142 000 applications connected to Twitter that violated developer rules and were collectively responsible for more than 130m "low-quality" tweets during the same period.
That, Stifel analysts wrote Wednesday, "may keep the stock in check", and could be the chief reason the shares have dipped this morning.
This self-examination has prompted new products and services. Twitter removed more than 142,000 apps, responsible for more than 130 million tweets, according to the company's letter to investors.
Twitter has a unique position now in the social media realm as the users, who are proactive on the platform, and the advertisers have embraced it wholeheartedly.
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