×
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

  • Facebook Logo

    Facebook Shuts Down Controversial Ovano VPN App

    Responding to a continued backlash over its data collection practices, Facebook pulled the plug on its Ovano VPN app Friday. Ovano, which promised users an added level of privacy while using public Wifi hotspots, was used by Facebook for market research purposes. Facebook removed the app from the Google Play store Friday, and the company [...]

  • Smosh

    Smosh Acquired by Rhett & Link's Mythical Entertainment

    UPDATED: Smosh, the long-running YouTube comedy brand, has been acquired by Mythical Entertainment, the company formed by Rhett & Link, hosts of comedy show “Good Mythical Morning.” As first reported by Variety last week, Mythical emerged as the leading candidate to buy Smosh, which was left stranded after parent company Defy Media shut down without [...]

  • China Video Streaming Giant iQIYI Loses

    Chinese Video Giant iQIYI Loses $1.3 Billion in 2018

    Chinese video streaming firm iQIYI lost over $1.3 billion in 2018, as revenues and subscriber numbers ballooned. The deepening losses reflected ever higher spending on original content production. Announcing its first full-year financials since a March IPO that launched it onto the NASDAQ, iQIYI said that it lost $1.3 billion (RMB9.1 billion) last compared with [...]

  • Roku headquarters

    Roku Aims to Top $1 Billion in Revenue in 2019, Beats Holiday Quarter Earnings Expectations

    Roku wants to become a billion-dollar company in 2019, and invest more in its ongoing international expansion. The streaming-device maker told investors on Thursday that it expects to generate between $1 billion and $1.025 billion this year, and that international growth was one of its key investment areas for 2019. Roku made these announcements as [...]

  • Vice Media

    Vice Media Taps Joe Simon as Chief Technology Officer (EXCLUSIVE)

    Joe Simon has been tapped as chief technology officer at Vice Media. The newly created role will include oversight of data analytics, engineering, information technology, media operations, media technology, post production, and systems management. Prior to Vice, Simon spent three years as Encompass Digital Media’s chief operating officer. Previously he held the chief technology officer [...]

  • att_logo

    AT&T Suspends YouTube Ad Spending as Boycott Over 'Pedophilia' Videos Scandal Widens

    AT&T, one month after it thought it was safe to advertise on YouTube again, said it is pulling all advertising spending from the world’s biggest video platform. The telco joins a boycott by marketers alarmed by the discovery that a secret group of child predators has been using YouTube to make sexual comments about kids. [...]

More From Our Brands

Access exclusive content