Twitters Earning Exceed Expectations
Twitter, one of the largest social networking giants announced its first-quarter earnings for the year of 2019. Happily, Twitter reported that they crushed expectations by more than $10 million. This resulted in their stock prices surging up by 6%.
The highlights of the report include:
- Earning $787 Million as opposed to the estimated $776 Million.
- Earnings per share adjusted to 37 cents vs the 15 cents estimated.
- Monthly active users jumped to 330 Million vs the expected 318 Million.
Jack Dorsey, the CEO of Twitter commented, saying: “We are reducing the burden on victims and, where possible, taking action before abuse is reported.”
The actions being taken by Twitter to reduce online harassment has benefited the social media firm. Now the company removes 2.5x the amount of tweets revealing personal information and 38x the amount of abuse tweets. This is what analysts speculate has caused for the rise in the services earnings and popularity.
Monthly active users won’t be reported anymore by Twitter after this first-quarter report. Instead, the company will now report on the monetized daily active users of each quarter. Currently, Twitter analysts suspect that the companies operating expenses will increase by 20% as a result of investing into the betterment of health and conversation on their platform.
Overall, this report is good news for the company and stockholders as the fourth-quarter report for 2018 was below expectations and dropped stocks by 10%.