Twitter Exceeds Expectations

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Twitter Exceeds Expectations For Q1

LOS ANGELES (CelebrityAccess) Twitter has exceeded Wall Street estimates, reporting modest user gains in the first quarter and better-than-expected revenues.

Analysts predicted earnings per share of 15 cents; Twitter far exceeded that with a 37 cent earnings per share. Revenue was expected to be $776.1 million; revenue, in fact, reached $787 million.

Twitter reported monthly active users, minus SMS users, of 330 million; analysts anticipated 318 million. The social network is expected to abandon this reporting for “monetizable daily active users,” according to Deadline. The shift comes after Twitter purged bot / fake accounts causing it to miss user estimates for two straight quarters.

“The health of the public conversation on Twitter remains our greatest priority, so people feel safe being a part of the conversation and are able to find credible information on our service,” the company said in its earnings release.

TWTR stock is up more than 7 percent in pre-market trading.

Twitter First Quarterly Results Exceeds Expectations at $787M and EPS of $0.25, Reduction of MAUs to 330M A Concern

Twitter, the social media and networking giant, shared the results of its first quarter. Standing at a solid $787 million, which is more than 18% when compared to last year, the company feels that it is on the right track.

It net income is more than $190 million and per-share earnings stand at a decent $0.25. Having said that, the monthly active users for the social media platform is another story. Twitter is facing stiff completion from other social media tools like Facebook and Instagram.

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The MAUs paint a sad picture for the company. According to the company, the MAUs stood at close to 330 million, which saw a reduction of 6 million, though the current numbers are more than 9 million when compared to the last Q1.

Twitter wants to change the mantra of its monthly users to monetizable daily active users. In the sense, users through, which the company can gain more profits. This quarter, they stood at close to 130 million, more than 11% than last year.

Analysts had predicted that the company could manage $775 million and not more. Market analyst felt that Twitter would be close to the $0.20 mark, on an EPS of $0.15 per share. As of now, the shares of the company are 5.3% up in the stock market.

During the previous quarter, Twitter had predicted its Q1, may hover around the $730 to $770 region, having operating income at $5 million and $35 million. Having accomplished their target, the company now wants to put its full focus and concentration on where it is going weak.

They are, users not being able to access the social media platform, when it is too active and issues of fake news, harassment, and quality content. The company has come up with solutions to tackle both these niggling issues.

For accessing issues, they are planning to use an app known as twitter and for the other issues; they are bringing in more stringent rules and laws.

Twitter Exceeds Expectations

Twitter exceeds analysts’ expectations: Twitter have reported their second profitable quarter in a row. This seems to have alleviated the doubts of the marketplace, providing more evidence that their wider strategy of focusing on growing the active user base, increased engagement with ads and the sale of data is beginning to pay off.

Concerns Shrugged Off

There’s been concern over the leadership of CEO Jack Dorsey, the embattled founder, who appears to have been struggling to balance responsibilities between Twitter and the payment processing platform he co-founded, Square.

Q1 earnings of $664.9m outperformed Thomson Reuters’ expectations by more than $50m. That represents a 21% year on year revenue growth. One of the key statistics the marketplace was looking out for was user uptake. In the ‘information age‘, more users means more attention, and more advertising revenue. Twitter bagged more than six million extra users a month, which represents a valuable opportunity for advertisers. Indeed, ad revenue was up more than 21% to $575m, indicating a higher rate of user engagement (despite the falling cost per engagement).

Shares Up 5.3% Following Report

This represents a remarkable turnaround for a tech stock many analysts had written off as overvalued. This time last year, investors were looking at a company reporting a $61.6m dollar loss. Now, Q1 profit has been reported at $61m, exceeding Twitter’s goal of “driving toward profitability” that they set in 2020. With all the indicators pointing in the right direction, Twitter have boosted their own projected earnings before interest, tax, depreciation and amortisation, to between $245m and $265m. Analysts expect a figure of only $217m. Will Twitter exceed expectations yet again?

One potential dampener to the mood was a cause for concern raised by Mr. Dorsey himself: the use of the platform for hate speech, the abundance of trolling and the large number of bots. This kind of malicious activity might not be so rampant much longer though. Twitter is looking to hire subject matter experts in the field. While this is certainly a step in the right direction, the efficacy of any new hires will have to remain to be seen.

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