Twitter reported a better-than-expected revenue with an increase in 24 percent during their fourth-quarter revenue and this has ended up helping their video advertising business develop. Just before this, they announced a decline in monthly active users, blaming their campaign of deleting millions of abusive accounts since they faced backlash after they were called out as being a platform used to influence political operations and hate speech.
In all, their revenue rose to $909 million (approximately Rs. 6,500 crores) in the quarter and beat Wall Street’s average estimate of $868.2 million (approximately Rs. 6,200 crores). Their total advertising revenue rose by 23 percent to $791 million (approximately Rs. 5,500 crores). Surprisingly, more than half of this revenue comes from video ads that are placed by corporate clients. The revenue from data licensing and other non-advertising businesses rose by 35 percent from a year to $117 million.
A new report by Twitter confirmed that the number of average daily active users exposed to Twitter ads had increased to 126 million in the fourth quarter which was 115 million a year back and 124 million in the previous quarter.
Monthly active users has gone up to a whopping 321 million. That was in sync with the forecasts done by analysts but it went down from 330 million a year to 326 million in the third quarter. Twitter said that after the current quarter they wouldn’t disclose their monthly active users.
For the current quarter, Twitter said that they have been expecting to receive a total revenue which would be in between $715 million and $775 million. Analysts have been expecting about $765 million, on an average.
Twitter said that they have expectations of seeing a rise in their operating expenses by about 20 percent year-on-year in 2019 because of their efforts to improve their service, whereas analysts’ have estimated the rise to be 12 percent.
They are expecting capital expenditures in between $550 million and $600 million, whereas analysts’ have estimated it as $415 million for 2019.