Twitter Sees Rise in Daily Users Viewing Ads, Beats Expectations on Revenue

Twitter's revenue and number of users have been in focus since it started deleting millions of spam or fake accounts.

Advertisement
By Reuters | Updated: 26 July 2019 17:20 IST
Twitter Sees Rise in Daily Users Viewing Ads, Beats Expectations on Revenue

Twitter posted a better-than-expected second-quarter revenue on Friday and an uptick in daily users who see advertisements on the site, driven by changes to show users more relevant content.

However, the company forecast third-quarter revenue below many Wall Street estimates and said revenue growth would lag the first two quarters, partly due to ending some older ad formats.

Twitter's revenue and number of users have been in focus since the social media platform started deleting millions of spam or fake accounts promoting hate speech or spreading political misinformation, contributing to declines in monthly users through 2018.

The company reported a rise in monthly active users in the first quarter, fueling speculation that Twitter was returning to growth, but has since stopped disclosing its MAU count.

Advertisement

Instead, this quarter it reported monetizable daily active usage (mDAU), a metric it created to measure only users exposed on a daily basis to advertising on the site and exclude those who access Twitter via aggregating sites like TweetDeck.

Its monetizable daily active usage (mDAU) hit 139 million, beating analyst expectations of 135 million, according to IBES data from Refinitiv.

Advertisement

Chief Executive Officer Jack Dorsey said machine learning improvements to deliver more relevant content helped drive up this count.

Twitter reported second-quarter profit of $1.1 billion (roughly Rs. 7,600 crores), or $1.43 per share, compared with $100 million, or 13 cents per share, a year earlier. Profit was boosted by an income tax benefit of over $1 billion related to corporate restructuring.

Advertisement

Twitter's revenue rose 18% from a year earlier to $841 million (roughly Rs. 5,800 crores), beating Wall Street expectations of $829 million, based on Refinitiv data.

Total advertising revenue rose to $727 million, an increase of 21 percent year-on-year, as the company continued to improve its ad platform and formats.

It forecast total revenue for the third quarter to be between $815 million and $875 million. Analysts on average were expecting about $869.3 million.

Twitter has continued to bulk up its live and on-demand video content partnerships. On Thursday, NBCUniversal said they would team up to livestream parts of the 2022 Olympic Games, Twitter's latest move in a series of deals aimed at boosting sports conversation on the platform.

It also expanded its multimedia features, launching a Snapchat-style camera feature in the Twitter app and releasing its own long-awaited tool for clipping and publishing video.

Last week, the company rolled out its redesigned site and in March launched "twttr," a prototype app where certain users can test out new features as part of its efforts to make conversations easier to find and follow.

Twitter also recently updated its policies on hateful conduct directed at religious groups and last month introduced a new policy to de-emphasize and label rule-breaking tweets from important sources like politicians, though this has not yet been used.

Total operating expenses, including cost of revenue, rose by 21 percent to $766 million, partly due to plans to hire more employees.

© Thomson Reuters 2019

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Twitter
Advertisement

Related Stories

Popular Mobile Brands
  1. Best Window ACs under Rs 30,000 in India (July 2025): See List
  2. The Hunt: Rajiv Gandhi Assassination Now Available For Streaming on SonyLIV
  1. Hubble Observations Give Forgotten Globular Cluster Its Moment to Shine
  2. Very Massive Stars Blow Away Outer Layers in Powerful Winds Before Black Hole Collapse
  3. Astronomers Capture First-Ever Image of a Dead Star That Exploded Twice in Rare Supernova Event
  4. Climate Satellite MethaneSAT Fails After Just One Year in Orbit
  5. New Interstellar Comet 3I/ATLAS Speeds Through Solar System
  6. The Hunt: Rajiv Gandhi Assassination Now Available For Streaming on SonyLIV
  7. Best Window ACs under Rs 30,000 in India (July 2025): Carrier, Voltas, Lloyd, and More
  8. CSIRO Uses Quantum AI to Revolutionize Semiconductor Design
  9. Metamaterial Breaks Thermal Symmetry, Enables One-Way Heat Emission
  10. NASA TEMPO Satellite to Continue Tracking Pollution Hourly from Space Until 2026
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.