Twitter reports record revenue of $909 million in Q4 2018
In its latest earnings release, Twitter once again lost monthly active users but says that increases in revenue and “monetizable daily active users” show its “long-term strategy is working.”
In Q4 2018, Twitter reported 321 million MAUs, compared to 330 million during the same time period last year. That was roughly what Wall Street expected.
Twitter last reported 326 million MAUs in its Q3 earnings report. The company has lost MAUs for the past two quarters, which the company attributed to Europe’s implementation of GDPR and ongoing investments in improving the health and safety of the platform.
The company also said that it will no longer start breaking out monthly users after Q1 in 2019. Rather, the company said that it will start reporting monetizable daily active users going forward — which the company defines as “Twitter users who log in and access Twitter on any given day through Twitter.com or our Twitter applications that are able to show ads,” which the company says was 126 million for Q1 2018. This is the first time Twitter has broken out some semblance of daily active users for multiple quarters — though the company has been saying for the last several quarters that those users have been growing. Here’s a slide from Twitter’s earnings deck to show how its monetizable daily active users have been growing.
The company netted $909 in revenue this quarter, about a 24 percent year-over-year increase. That beat Wall Street’s expectations of $868.1 million. Advertising made up the bulk of Twitter’s revenue at $791 million, and of that, video ads were its fastest-growing ad format. Twitter’s GAAP net income for the quarter was $255 million.
“2018 is proof that our long-term strategy is working. Our efforts to improve health have delivered important results, and new product features like a single switch to move between latest and most relevant Tweets have been embraced by the people who use Twitter,” said Jack Dorsey, Twitter’s CEO. “We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service.”
Twitter did caution to shareholders that it expects expenses to rise next quarter, and that total revenue will drop to “be between $715 million and $775 million.” That’s likely why shares were down in pre-market trading.
On the company’s earnings call, Dorsey is expected to discuss the company’s ongoing mission to improve the health of Twitter — over the past year, it has prioritized removing spam and bot accounts from its service — as well as the promise the company sees in monetizable daily users.
More to follow