Twitter Tops Forecasts
April 23, 2019
Twitter reported financial results
for its first quarter 2019. The firm had adjusted earnings per share of
37 cents with only 15 cents expected. As to revenue, the firm noted $787
million with only $776.1 million expected.
Twitter had monthly active users (MAUs),
excluding SMS users of 330 million with 318 million expected.
"We are taking a more proactive approach to reducing abuse and its
effects on Twitter," said Jack Dorsey, Twitter's CEO. "We are reducing
the burden on victims and, where possible, taking action before abuse is
reported. For example, we are now removing 2.5x more Tweets that share
personal information and ~38% of abusive Tweets that are taken down
every week are being proactively detected by machine learning models.
We're also continuing our work to make Twitter more conversational via
the launch of our public prototype app (twttr), with the end goal of
making conversation on Twitter feel faster, more fluid, and more fun."
"We're delivering strong results with ad revenue up 18% year-over-year,
demonstrating Twitter's unique value proposition for advertisers as the
best place to launch something new or connect with what's happening,"
said Ned Segal, Twitter's CFO. "We've never been more confident in our
strategy and execution and see a great opportunity to grow our audience
and deliver even more value for advertisers."
2019 Operational and Financial Highlights
revenue totaled $787(1)
million, an increase of 18% year-over-year or 20% on a
constant currency basis
Advertising revenue totaled
$679 million, an increase of 18%
year-over-year or 20% on a constant currency basis.
Total ad engagements increased 23%
Cost per engagement (CPE) decreased 4%
licensing and other revenue totaled
$107 million, an
increase of 20% year-over-year.
revenue totaled $432 million,
an increase of 25% year-over-year.
International revenue totaled
$355 million, an increase of 11%
year-over-year or 15% on a constant currency basis.
- Q1 costs
and expenses totaled $693 million,
an increase of 18% year-over-year. This resulted in
operating income of $94 million
and 12% operating margin.
- Q1 net
income was $191 million,
representing a net margin of 24% and diluted EPS of
$0.25. Excluding the
impact of a tax benefit of $124
million related to the establishment of a
deferred tax asset for corporate structuring for certain
geographies, adjusted net income was
$66(2) million, with
adjusted net margin of 8% and adjusted diluted EPS of
$0.09. In the same period
last year, we reported net income of
$61 million, net margin of
9%, and diluted EPS of $0.08.
monetizable daily active users (mDAU) were 134(3)
million for Q1, compared to 120 million in the same
period of the previous year and compared to 126 million
in the previous quarter.
Average US mDAU were 28 million for Q1, compared to
26 million in the same period of the previous year
and compared to 27 million in the previous quarter.
Average international mDAU were 105 million for Q1,
compared to 94 million in the same period of the
previous year and compared to 99 million in the
monthly active users (MAU) were 330 million for Q1,
compared to 336 million in the same period of the
previous year and compared to 321 million in the
Average US MAU were 68 million for Q1, compared to
69 million in the same period of the previous year
and compared to 66 million in the previous quarter.
Average international MAU were 262 million for Q1,
compared to 267 million in the same period of the
previous year and compared to 255 million in the
- As a
reminder, this is the last quarter we will disclose
MAU. We want to provide something valuable to people
on Twitter every day, and we believe that mDAU, and
its related growth, are the best ways to measure our
revenue to be between $770
million and $830 million
Operating income to be between
$35 million and $70
For FY 2019:
operating expenses to increase approximately 20% on a
year-over-year basis in 2019 as we continue to invest
for growth and support the top priorities we outlined at
the beginning of the year: health, conversation, revenue
product and sales, and platform
Stock-based compensation expense to be in the range of
$350 million to
expenditures to be between $550
million and $600 million