In spite of Twitter’s serious efforts towards dealing with abusive content in a more severe way for making the social media outlet a more pleasant place to be, a large number of users flocking the platform has become a reason for the company to soar high.
According to a recent report, Twitter disclosed on Tuesday that there is a considerable increase in its first quarter revenue as well as in the the monthly active users that has reached a mark of 330 million in the first quarter from 321 million in the fourth quarter last year. This is indication about the social media company to be on a sustainable path now after seeing a year of stagnant user growth.
According to the prediction made by IBES data from Refinitiv, analysts had expected Twitter’s monthly active users to be 318.8 million in the first quarter i.e. a loss of 2.2 million users. However, the quarterly monthly active users (MAU) for the social media company increased by 9 million from the previous quarter making it to be 330 million.
As revealed by the social media company that is working towards enhancing its quality by eliminating thousands of spam & suspicious accounts, they will no longer unveil MAUs from the next quarter.
The company however will disclose the numbers related to the “monetizable” daily active users (mDAU), a metric that is created by them for measuring the number of users only exposed to advertising on a daily basis.
As unveiled by Twitter, mDAU for the company has rose to 134 million in the first quarter i.e. 12% up from a year ago. 18% up from a year ago, Twitter’s revenue has rose to $787 million in the first quarter of 2019. The numbers has surpassed the predictions made by Wall Street that expected its revenue to reach $776.1 million in the first quarter of this year. Revenue for the social media company was boosted by ad sales that also rose 18% to $679 million.
Twitter also has to go through more operating costs as the company is cleaning up its platform to reduce abusive user behavior.
“We are now removing 2.5x more Tweets that share personal information and 38 per cent of abusive Tweets that are taken down every week are being proactively detected by machine learning models,” Chief Executive Officer Jack Dorsey said in a statement.
Total operating expense and the cost of revenue together rose to $693 million i.e. 18% up from the first quarter a year ago. As per the report, the quarterly profit for Twitter is $191 million, or 25 cents a share, in comparison to $61 million, or 8 cents per share, a year ago. If $124.4 million tax benefit is excluded, the social media company earned 9 cents per share.
Source: The Indian Express