Twitter finally tells brands how many users it has

Lloyd Doyle
February 8, 2019

Twitter is also anticipating operating income during the quarter of $5 million to $35 million-well below the $74.9 million operating income Twitter posted during the same period past year.

According to Twitter's earnings report, "Monetizable DAU are Twitter users who log in and access Twitter on any given day through or our Twitter applications that are able to show ads".

"As a platform for breaking news and live moments, many users are logging in on a daily basis, and Twitter is acknowledging this pattern by sharing metrics with ad buyers that will allow them to see the bigger picture as it relates to users who are reachable by ads".

The results prove "our long-term strategy is working", Chief Executive Officer Jack Dorsey said in the statement.

The reasoning is that a less-toxic Twitter should benefit its standing with ad buyers in the long term. It's possible the company chose to do so because the daily active user number went up year over year while the number of monthly users went down.

"We want to align our external stakeholders around one metric that reflects our goal of delivering value to people on Twitter every day and monetising that usage".

"At first glance, we are encouraged by ongoing positive revenue and mDAU ("monetizable" DAU) trajectory with strong Q4 results; however, management's guidance suggests higher levels of platform investment amid a slowdown in revenue growth", Sebastian wrote in a note Thursday to investors. Analysts had expected 25 cents, on average, according to IBES data from Refinitiv.

Those costs could weigh on margins and future earnings, other analysts say.

The social media company posted a decline in monthly active users, due in part to its campaign of deleting millions of abusive accounts after facing criticism it was being used as a platform for political influence operations and hate speech.

Twitter's share price fell more than 8% in early Wall Street trading as record fourth-quarter revenues and the milestone of achieving its first full year of profitability failed to allay investors' concerns over a drop in user numbers and a weak revenue forecast. Advertising revenue over the same period rose from $644 million to $791 million.

Starting in the current quarter, Twitter said it would stop disclosing the number of monthly active users, a statistic internet companies have routinely reported over the past decade.

Twitter reported quarterly profit, excluding some items, of 31 cents per share.

Other reports by Iphone Fresh

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