Twitter (NYSE: TWTR) reported Q4 2019 earnings reporting mixed results but showing that they have overcome a past issue impacting growth and showed that past technical issues are behind them.
The social network reported sales for the quarter of $1.01 million, beating consensus revenue estimates of $994.9 million. Sales were 11% higher than the same quarter last year which was a sign that the company has recovered some momentum again.
Last quarter the company had reported issues with a mobile app promotion ad feature issues which impacted the ability to target ads based on user interests and impacted revenues. With no mention of the issue in the current earnings release it appears as though the company has been able to resolve that issue and the growth in revenue was another validation that the trouble is behind the company.
On the bottom line, the company posted $0.25 earnings per share which barely missed Wall Street expectations of $0.27 earnings per share.
Another closely followed metric for the company is their growth in users which they report as monetizable daily active users (mDAU). In the fourth quarter Twitter grew mDAU by 21% to a total of 152 million. The social network is now booking $6.63 in revenue per user compared to the $5.68/user in Q3 which is a healthy 17% increase quarter over quarter.
Twitter also provided some guidance for Q1 2020, which it estimates will bring in total revenue between $825 million and $885 million. Consensus estimates for the social network had been expecting $872 million in revenues for the first quarter of the year.
Twitter was able to buck the trend of other social network which encountered challenges in meeting expectations recently as both Facebook (NASDAQ: FB) and Snap (NYSE: SNAP) both disappointed Wall Street in their most recent earnings reports due to weaker than expected guidance.
Twitter’s stock has had a bit of a rough go of things since it’s last earnings report when it first reported the mobile app promotion ad issue. Since reporting that bug, the company’s stock has lost close to 14% of its value. In pre-market trading Twitter’s stock was up 8% immediately following the release of the earnings report as of the time of publishing.
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