Twitter [NYSE: TWTR] is exchanging hands at $39.77 on Wednesday 24 after a 16.69% rise. The stock previously closed at $34.39 while it has achieved at intraday high at $40.535 and a low of $32.73. The real-time quotes provided by Nasdaq show TWTR having a 52-week high of $47.79 and a low $26.19. In addition to that, the NLS volume for the stock stands at $82,599,896 while the last NLS sale was at $40.13 following a relative change of about 40.13.
The social media giant released the financial report for the first quarter of 2019 on April 23. The company, posted an 18% year-over-year revenue growth. At the same time, Twitter had an 11% year-over-year growth in monetization daily active usage. The CEO of the firm, Jack Dorsey commented on the report saying:
“We are taking a more proactive approach to reducing abuse and its effects on Twitter.” He continued “We are reducing the burden on victims and, where possible, taking action before abuse is reported. For example, we are now removing 2.5x more Tweets that share personal information and ~38% of abusive Tweets that are taken down every week are being proactively detected by machine learning models. We’re also continuing our work to make Twitter more conversational via the launch of our public prototype app (twttr), with the end goal of making conversation on Twitter feel faster, more fluid, and more fun.”
Twitter (TWTR) Q1 2019 Operational and Financial Highlights
The firm’s first quarter was $787 (1) million representing an 18% year-over-year increase or otherwise 20% on a constant currency basis. Twitter made $679 million in advertising revenue while it had an ad engagement increase by 23% year-over-year. However, the cost per engagement (CPE) went down by 4% year-over-year. The firm also recorded a data licensing coupled with other revenues of $107 million representing a 20% year-over-year rise. The revenue from the US summed up to $432 million after a 25% year-over-year increase. Twitter had collected $693 million from international business as well.
The cost and expenses summed to $693 million representing an 18% year-on-year as a result of a $94 million operating income as well as a 12% operating income. Twitter made $191 million in net income in the Q1 which represents a 24% net margin and diluted EPS of $0.25. This figure does not include a $124 million tax benefit income in relation deferred tax asset.
The average monetizable daily active users (mDAU) was 134(3) million for the first quarter of 2019 in comparison to 120 million at the end of the same period last year, besides the same period in 2017 mDAU achieved was 126 million.
Twitter (TWTR) Q2 projections
Investors expect a revenue increase in the next quarter to range between $770 million and $830 million. On the other hand, the operating income is likely to range between $35 million and $70 million. In terms of FY, it is expected that GAAP operating expenses to rise by roughly 20% on a year-on-year basis in 2019. The company will keep investing in growth as well as continue supporting the priorities that were put in place at the beginning of 2019. As far as stock compensation expense is concerned, the firm projects it to stay between $350 million and $400 million while capital expenditures will range between $550 million and $600 million.