×
You will be redirected back to your article in seconds

Twitter Punches Up Q1 Revenue 21% on Strong International Sales, Posts Second Profitable Quarter

Twitter beat forecasts on the top and bottom line in the first quarter of 2018, lifted by a 53% jump in international revenue and a net gain of 6 million monthly users.

The company reported Q1 revenue of $665 million, up 21% year-over-year, and net income of $61 million (versus a net loss of $62 million in the year-ago quarter). It was only Twitter’s second quarter of posting a profit, after delivering its first net income in Q4 of 2017.

Adjusted earnings per share of 16 cents exceeded Wall Street’s expectations EPS of 12 cents, while Twitter beat analyst expectations of $605 million in revenue.

Twitter shares were up more than 2% in premarket trading Wednesday on the results. However, the stock dropped into negative territory after the market opened, falling more than 3% in morning trading after Twitter warned that will “face increasingly difficult comparables in the second half of 2018” given the turnaround in the business that began in the second half of 2017. “As a result, we continue to believe that our sequential growth rates for total revenue for the remainder of 2018 will resemble the sequential growth rates for total revenue in 2016,” the company said in a letter to shareholders.

According to Twitter, video now accounts for more than half of its ad revenue — which totaled $575 million in the quarter — and was again the fastest-growing ad format in Q1.

International revenue totaled $318 million, an increase of 53% year-over-year. Twitter called out particular strength in the Asia-Pacific region: Japan continued to be its second-largest market in terms of revenue after the U.S., with sales rising 61% year-over-year and contributing $117 million (or 18% of total revenue) in Q1.

Twitter’s average monthly active users grew 3% in the period, to 336 million for Q1, representing a net increase of 6 million sequentially. Most of that was overseas: In U.S., Twitter had 69 million MAUs (up about 1 million from the prior quarter). Analysts had expected Twitter to add a net 5 million monthly active users in Q1.

Once again, Twitter touted growth in its average daily active user base — saying it was up 10% year-over-year — but as usual it did not provide actual figures on the DAU metric.

“The first quarter was a strong start to the year,” Twitter CEO Jack Dorsey said in announcing the results. “We grew our audience and engagement, marking another quarter of double digit year-over-year DAU growth, and continued our work to make it easier to follow topics, interests, and events on Twitter.”

Twitter’s Q1 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was $244 million, compared with $170 million for the same period last year.

Stock-based compensation in Q1 declined 37% year-over-year, to $73.3 million. For Q2, Twitter expects adjusted EBITDA to be between $245 million and $265 million, and stock-based compensation expense to be $85 million to $95 million.

Twitter’s ad revenue on owned-and-operated platforms was $533 million, up 28%. Non-O&O advertising revenue fell 28%, to $42 million, driven by a $23 million year-over-year decline from the deprecated TellApart product (which did not generate any revenue in Q1). Excluding TellApart, non-O&O advertising revenue would have increased 18%.

Twitter ended Q1 2018 with $4.5 billion in cash and equivalents, and $1.6 billion in long-term debt.

More Digital

  • NPR Releases Open Source Podcast Metrics

    How NPR Aims to Bring Transparency to Podcast Metrics

    NPR unveiled a new open source podcast measurement project Wednesday that aims to bring more transparency and granularity to podcast metrics. The project, dubbed Remote Audio Data (RAD), has been developed in partnership with a number of podcast app developers, ad tech companies as well as tech and media heavyweights including ESPN, Google and iHeartMedia. [...]

  • 2019 Variety Predictions

    2019 Predictions: What's in Store for Film, TV and Music Next Year?

    It would be hard to top the drama of 2018. From media mega-mergers to the rise of Time’s Up, it was a year that had more than its fair share of twists and turns. Leslie Moonves resigned in disgrace, AT&T snapped up Time Warner, Disney inched closer to subsuming Fox and “Black Panther” shattered box [...]

  • apple brooklyn october 2018 event

    Apple Looking to Launch Magazine Subscriptions in Early 2019 (Report)

    Apple is preparing to relaunch Texture, a news subscription app it acquired in March, as a premium tier of Apple News early next year, according to a Bloomberg report. To prepare for the launch, Apple has been trying to get prominent newspapers including the New York Times and the Wall Street Journal to come on [...]

  • Tencent Music Raises $1.1 Billion for

    Tencent Music Raises $1.1 Billion for IPO, Much Less Than Expected

    China-based music streaming company Tencent Music Entertainment Group said it raised nearly $1.1 billion in its U.S. initial public offering, according to Reuters. Earlier this year, the company was expected to be valued at as much as $30 billion and raise $4 billion for its IPO, but those estimates were slashed in September. he IPO [...]

  • Netflix Orders ‘I Am Not Okay

    Netflix Orders ‘I Am Not Okay With This’ From Producers of ‘Stranger Things’

    The producers of “Stranger Things” and creator and director of “The End of the F***ing World” series are making “I Am Not Okay With This” for Netflix, a coming-of-age tale about a girl with mysterious powers. 21 Laps will make the series, which was co-created by Jonathan Entwistle, who was behind Channel 4 and Netflix show [...]

  • Netflix Logo

    Netflix’s India Content Head Swati Shetty Makes Exit

    Swati Shetty, who has headed Indian content operations at Netflix is to step down from the global streaming giant. She joined the streamer in August 2016 as director of international originals and acquisitions. The company said it is placing more emphasis on India and that the role should ideally be fulfilled form Mumbai, rather than [...]

  • Oculus Rift

    ZeniMax Agrees to Settle Facebook VR Lawsuit

    Game company ZeniMax Media said it is has agreed to settle litigation against Facebook, Oculus and individual executives alleging misappropriation of its virtual-reality technology. Terms of the settlement were not disclosed. ZeniMax sued Facebook in 2014 after Id Software co-founder John Carmack joined Oculus as chief technology officer. In the suit, which sought as much as $4 billion in damages, alleged [...]

More From Our Brands

Access exclusive content