It appears like Twitter, the oft-beleaguered social community that’s nonetheless price greater than Snap, will nonetheless maintain that standing for somewhat longer after delivering a stronger-than-expected quarter this morning.
Twitter’s month-to-month energetic customers barely grew — although it did, certainly, develop — by round 3% worldwide year-over-year, and is now at round 336 million month-to-month energetic customers. That isn’t loopy progress or dimension within the scope of how massive Facebook is, but it surely nonetheless implies that Twitter isn’t shedding these customers. It’s going to be re-entering a crucial time heading into one other 12 months of elections. All that is going to be crucial to its story because it tries to promote a turnaround on Wall Street, the place it at one level was price greater than double it’s now.
The firm beat out Wall Street’s expectations by delivering $655 million in income, resulting in a small spike within the inventory this morning by about 5%. Here’s the ultimate scorecard:
- Monthly energetic customers: 336 million, up 3% year-over-year and in comparison with round 334 million anticipated
- U.S. MAUs: 69 million, about flat year-over-year
- International MAUs: 267 million, up 4% year-over-year
- Q1 Revenue: $665 million, in comparison with $608 million Wall Street estimates and up 21% year-over-year
- Q1 Earnings: 16 cents per share, in comparison with 12 cents per share estimates
While all of this appears fairly sturdy, Twitter had a fairly bumpy however considerably optimistic 2017 on Wall Street towards the again finish of the 12 months. It’s been making important strikes to attempt to curb abuse and harassment and has really been tweaking the product in some methods, even when they don’t significantly really feel earth-shattering. Expanding the character rely from 140 to 280 characters may not look like rather a lot, but it surely does compress extra info into that small area, and any little bit of engagement helps Twitter in the long term maintain itself.
Late final 12 months, Twitter handed Snap in market cap. While that is largely symbolic, it’s form of a snapshot of the strain each networks are below to indicate that advertisers are literally all for a platform past Facebook. Both firms are fairly risky and must promote Wall Street on progress tales.
(Interestingly, Twitter’s stock-based compensation expense — an expense that’s been hounding Twitter for a while — more and more appears to be getting below management. It’s right down to round $73 million within the first quarter, in comparison with $117 million within the first quarter final 12 months.)
While it received’t be the dimensions of Facebook, Twitter has to place itself as a singular spot the place advertisers can attain an viewers that’s in a special form of behavioral mode than they’re on Facebook. Twitter has sought to concentrate on a reside feed of data, whether or not that’s attempting to rejigger the timeline to floor up essential info or investing extra in video. That, theoretically, implies that Twitter may promote itself as a platform with the next degree of engagement in sure actions — one thing that Snap has accomplished as a way to place itself in a optimistic means for Wall Street.
All this has given Twitter a option to present that whereas its income will not be the size of Facebook, it’s a special form of income, and one which may have a number of worth for advertisers. If it will possibly do this, and proceed to scale up its consumer base over time after which transfer into important information occasions like an elections cycle, it’d have the ability to decide up an increasing number of advertisers. There was a degree once we had been speaking about how its promoting income had fully stalled and was headed right into a tailspin, but it surely appears prefer it’s really gotten that below management.
That’s additionally why Twitter loves to indicate this chart and speak about it on its quarterly earnings releases, which has solely one of many two required axes as a way to be a chart. The chart exhibits year-over-year day by day energetic consumer progress, however the firm doesn’t like to supply some form of foundation for what number of of its customers are literally super-active DAUs. But, nonetheless, right here it’s in all its glory: