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Twitter shares leap after revenue and user growth

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Beating estimates: Twitter shares jumped 15pc after a positive update

Beating estimates: Twitter shares jumped 15pc after a positive update

Beating estimates: Twitter shares jumped 15pc after a positive update

Twitter has topped analysts' projections for fourth-quarter revenue and added more new daily users than expected, citing product improvements and more personalised content on its social network.

Revenue rose 11pc to $1.01bn (€920m), slightly higher than the $994.5m predicted in a Bloomberg analyst survey.

Twitter's user growth was a bigger surprise. The company added seven million daily active users in the period, and now has 152 million people logging in daily on average, up 21pc from the same period a year earlier. Bloomberg consensus estimates were for the company to finish 2019 with just 148.1 million total users.

Twitter said that more than half of the 26 million daily users it added in 2019 were "directly driven by product improvements" and its daily user base grew by "double-digit increases in all of our top 10 markets" in the fourth quarter. The company has made a public effort to improve user interactions on its service, and make it easier for users to find posts about topics they care about.

CEO Jack Dorsey said that he sees Twitter "more as an interest network than a social network" and plans to push deeper into products that highlight that distinction.

This includes products like curated lists of followers, which Mr Dorsey likened to a music playlist, and the ability to follow interests, not just other people.

The stock rose as much as 15pc yesterday, the most since April 23. That brings gains in the past 12 months to 11pc.

Despite the positive numbers, Mr Dorsey told analysts that Twitter needs to work faster. The company is notoriously slow when it comes to shipping new products and features.

"The time it takes to go from an idea to shipping something wonderful to customers still takes too long," he said.

The fourth-quarter numbers provide a stark contrast with Twitter's third-quarter earnings report, in which the company missed its revenue projections and the stock fell by more than 20pc.

At the time, Twitter also lowered its fourth-quarter outlook and yesterday's revenue total was at the high end of that revised guidance, but still lower than what analysts had initially projected heading into the quarter.

Last quarter, Twitter blamed some of its challenges on a "bug" that enabled the company to mistakenly target people with ads using personal data uploaded for security purposes.

Removing that data from its targeting arsenal hurt the firm in the third quarter, and was still a problem in the fourth quarter, according to the company's shareholder letter.

Bloomberg

Irish Independent