Twitter’s highly anticipated earnings report has finally been released and it surpasses predictions, albeit slightly. As news of Twitter’s Q3 financial results emerged, its shares promptly rose by 89 cents, marking an increase from the previous $18.18.
For the quarter ending in September, revenue sat at an impressive $616m, up from the previously forecasted $606m. Per share value followed suit, increasing from 9 cents to 13 cents. These figures mark an 8 percent year over year upgrade, providing a positive hint at Twitter’s financial steadiness during this period.
Continuing this trend, Twitter reported a 3 percent annual increase in monthly average users (MUA), while daily average users grew by an additional 7 percent. This surge in user growth has been a key focus for investors, thus these figures bring potentially encouraging news. In particular, the 7 percent increase in daily average users— rising from 5 percent in Q2, and 3 percent in Q1—illustrates a steady user growth, which is a crucial factor for Twitter’s financial turnaround, especially when scrutiny persists over the micro-blogging site’s sluggish user engagement.
Interestingly, an area that meets the keen eye is Twitter’s advertising revenues. Showing a healthy jump of 6 percent, advert revenues increased to $545m. Moreover, a considerable growth of 26 percent was reported in “data licensing” revenue, escalating to $71 million.
Amid the report’s release, Twitter CEO, Jack Dorsey reflected on the company’s strategic approach and its potential for further growth: “Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” said Jack Dorsey. “We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”
The release of these earnings followed widespread speculation regarding a possible Twitter takeover, which has since quieted. As a standalone entity, Twitter’s reported 9 percent job cut could be the initial step in a structural realignment. Analysts propose the company may be in need of a full time CEO, as Dorsey, who took over from Dick Costolo last year, still holds the CEO position at payment company Square.
As Twitter’s Q3 earnings exhibit encouraging results and interesting trends, the tech company’s future actions and strategies will be of ongoing interest to investors, analysts, and stakeholders alike.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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