Twitter stock turns lower after the open

Sheri Evans
April 26, 2018

Consensus estimates from Thomson Reuters had called for $0.12 in EPS on revenue of $605.36 million, and the first quarter of a year ago reportedly had EPS of $0.07 and $548.25 million in revenue. Net profit improved to Dollars 61 million from a loss of USD 62 million a year ago, helped by a USD 21 million boost from the cut in United States tax rates.

Excluding items, the company earned 16 cents per share, topping the average analyst estimate of 12 cents per share.

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.

According to Engadget, "At the end of Twitter's 2017 financial year, the company had 330 million monthly active users, of which 68 million were based in the US". Analysts had expected Twitter to add a net 5 million monthly active users in Q1.

On a conference call with analysts Wednesday, Twitter CEO Jack Dorsey said he expects Twitter to be profitable, but cautioned that it was still working through a business recovery it started a year ago.

"The first quarter was a breath of fresh air for investors that have patiently awaited this turnaround story to manifest after years of pain and it looks like the Twitter growth train is back on track delivering two very strong consecutive quarters", wrote Daniel Ives, head of technology research at GBH Insights. Facebook reports earnings Wednesday afternoon.

Shares hiked 61 cents, or 2%, to $31.08 early Wednesday. However, a USA monthly user growth miss and a warning of slow second-half revenue growth have TWTR stock down 4% at last check to trade at $29.24. Internationally, monthly active users grew to 267m users from 262m. The company is also seeing more traction from videos, which now make up more than half of its total ad revenue.

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Twitter's growth comes as social-media giant Facebook deals with the Cambridge Analytica data scandal.

Separately, Twitter is also updating its Privacy Policy and Terms of Service to make them easier to understand, as well reflect ongoing changes to its platform.

Known for short messages, Twitter has paid to develop live shows and broadcast live events, using videos to get people to spend more time on the service and to sell video ads to marketers.

"We are not a social network".

The company has been working on more methods to keep visitors on the site for longer than it takes to post a tweet.

Twitter's MAUs grew a modest 3% for the quarter, hitting 336 million.

Twitter said it's limited the ability of users to perform coordinated actions across multiple accounts, which has resulted in roughly 90% fewer users creating fake or automated engagement through the social media dashboard TweetDeck.

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