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Twitter Remains Profitable As It Continues to Add Users

Twitter beats expectations with $665M in revenue amid its turnaround hopes		
		
	Matthew Lynley

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   	7 hours

It also increased its holding in Amazon Com Inc (NASDAQ:AMZN) by 6,500 shares in the quarter, for a total of 14,000 shares, and has risen its stake in Mplx Lp (NYSE:MPLX). Live programs, including sports and information shows, have helped Twitter in its efforts to sell more video ads, which are fueling the company's revenue gains.

Advertising revenue totaled $575 million, an increase of 21 per cent year-over-year, while total ad engagements increased 69 per cent year-over-year.

USA revenue rose 2 percent to $347 million, worldwide revenue rose 53 percent to $318 million.

It added six million users in the first quarter, taking its active user base to 336 million.

In the first quarter, the company said it removed more than 142,000 applications connected to Twitter that violated developer rules and were collectively responsible for more than 130 million "low-quality" tweets during the same period.

The results helped Twitter's shares rise nearly 3 percent in pre-market trading, but those gains evaporated after the regular trading session began and investors assessed Twitter's outlook.

On an adjusted basis, earnings were $122.99 million or $0.16 per share, compared to net income of $53.23 million or $0.07 per share previous year. Net income attributable to Facebook shareholders rose to $4.99 billion, or $1.69 per share, from $3.06 billion, or $1.04 per share, a year earlier. Twitter said daily users grew 10% from a year ago, though the company doesn't disclose the base number of people.

Twitter earnings top forecasts from CNBC.

It was the company's second profitable quarter.

"We knew Twitter would be moving from strength to strength this quarter". We saw steady growth for brands using 4C to manage their Twitter campaigns in Q1 with spend going up and cost per click going down, which advertisers are getting savvier with their optimisations. Twitter, Facebook and Google are all facing calls for potential regulation on internet companies following revelations that political-consulting firm Cambridge Analytica harvested private data from some 87 million Facebook users. Granite Point Capital Management L.P. bought a new position in Twitter in the fourth quarter valued at about $960,000.

More broadly, Wieser considers Twitter to be a "durable, if niche (but highly differentiated), platform for digital advertising", while Pivotal maintains its "sell" rating on the company's stock. Twitter users also started seeing pop-ups on the platform with links to info about what data Twitter collects, how that data is used and the controls they have over it.