Twitter up on increase in users and revenue
Twitter shares jumped the most in almost six months after it topped first-quarter sales projections and reported strong user growth, bolstered by changes that are drawing a wider audience of consumers and advertisers.
The social media giant, which has its European HQ in Dublin and employs almost 200 people here, reported $787m (€701m) in revenue, 18pc up from the year-earlier period. Analysts, on average, estimated $775m.
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The microblogging site also posted an increase in monetisable daily active users to 134 million, beating analyst predictions for about 128.4 million. That compares with 126 million in the fourth quarter.
Twitter shifted focus to daily users for the first time in the December quarter, arguing it's a more meaningful metric than monthly visitors because the company aims to drive people to the service every day.
CEO Jack Dorsey has been escalating efforts to rid the site of toxic content. Having long been criticised for relying on users to report abuse, the company recently said some 38pc of abusive content is now being found through technology and flagged for human review, up from none last year.
Rich Greenfield, an analyst at BTIG, said the increase in monetisable daily active users was the largest in the past four years, "clearly illustrating that the product improvements and health initiatives are resonating with consumers all over the world". Twitter rose as much as 12pc, the most since October, to $38.35 in New York.
Monthly active users were 330 million in the first quarter, Twitter said. That was up from 321 million in the previous quarter, but marked a decline from the 336 million in the year-earlier period.
Twitter said this is the last time that it will disclose monthly active users. Still, Twitter is ending reporting of that metric "on a high note," with monthly active users rising quarter over quarter for the first time since at least early 2018, noted EMarketer analyst Jasmine Enberg.
Twitter's shift to monetisable daily active users is "in keeping with its value proposition to advertisers - a committed though not very large user base when compared with other social platforms," she said.
Twitter's stock is up 20pc so far this year, outperforming the broader market but lagging behind peers.