Back in February 2018, Twitter reported it’s first profit ever since its inception but also shared that the company couldn’t grow its base. Friday (July 26) the popular social media medium announced through its earnings report growth in daily users and shares are surging.
Twitter bested analyst estimates on the top and bottom lines posting better than expected earnings Friday (July 26). Share prices went up by 8.9%, with more than $2.6 billion added to Twitter’s market cap bringing it to $31.9 million.
Here are the key numbers Twitter reported for its second quarter of 2019:
- Earnings per share: 20 cents, adjusted, vs. 19 cents per share expected, per Refinitiv survey of analysts
- Revenue: $841 million, vs. $829.1 million expected, per Refinitiv
- Average monetizable daily active users (mDAUs): 139 million
Revenue was up 18% year over year, the company said, due to domestic growth. Twitter said it reached an average of 139 million monetizable daily active users (mDAUs) in the second quarter, a 14% increase year over year. Average domestic mDAUs came to 29 million in the quarter, a 10% increase compared with a year earlier. Internationally, average mDAUs were 110 million in the quarter, up 15% from the previous year.
While this is all great news, some would suggest that Twitter’s decision to stop sharing monthly usage numbers could be helping inflate those figures.
Per The Verge:
Twitter wants us to take away. As of this quarter, Twitter is no longer disclosing how many monthly users it has, and that number spent a full year in decline, only growing again in the first few months of this year.
Twitter said that daily usage numbers are “the best ways to measure our success.” But it’s also being frustratingly obtuse in its presentation, saying that its own daily usage numbers “are not comparable” to other companies’ daily usage numbers, because other companies count differently. Twitter says the difference is that it only counts daily users who see ads, whereas other companies count users who don’t.
What that means is, Twitter doesn’t want its 139 million daily users compared against Snapchat’s 203 million daily users, Instagram Stories’ 500 million daily users, Facebook Stories’ 500 million daily users, or Facebook’s 1.59 billion daily users. Twitter isn’t necessarily competing directly against any of those services, but in comparison, it shows just how much smaller Twitter’s daily usage really is.
Interesting, but it would still look like if you’re into the stock market, now would be a good time to invest in some Twitter stock.
Photo: ALASTAIR PIKE / Getty