microblogging Service Twitter Inc. reported revenue above analysts ‘ expectations and also increased the number of new daily users above forecasts, citing improved service and a more personalized content in a social network. Revenues Twitter grew by 11% to $1.01 billion, slightly above the forecast of $994,5 million made by analysts Bloomberg.
the growing number of users Twitter has become even more of a surprise. From the second quarter of 2019 Twitter does not publish data on the number of users and announces only the indicator of “monetizing monthly active users”. During the quarter, the company reported gains of 7 million daily users, and now, on average, 152 million people use the service daily, which is 21% more than in the same period a year earlier. According to estimates Bloomberg Consensus, the company had to finish in 2019 with just 148,1 millions of users.
Total revenue from advertising was $885 million, an increase of 12% compared to the same period last year. Mainly revenues Twitter grew in the U.S. by 17%, while international is only 3%. In a statement issued on Thursday, Twitter reported that more than half of the 26 million daily users, which were added in 2019, was attracted by improving service, daily user base has shown “double-digit growth in all top 10 markets” in the fourth quarter. The company announced that it has deployed efforts to improve interaction of users within their service and to help users locate messages on a particular topic of interest.
the company’s Shares rise in price in premarket trading on Thursday by 8%.
the performance of the fourth quarter in stark contrast to the Twitter earnings report for the third quarter in which the company worked below the forecast of revenue, and shares fell more than 20%. At the same time, Twitter has also lowered the forecast for the fourth quarter, and the total revenue on Thursday was on the top Uroout of this revised forecast, but still lower than was predicted by analysts in the beginning of the quarter.
Earlier, the company said that advertising revenues could be much higher, but a technical error limited the use of the personalized target and data exchange with partners. In the past quarter, the company said that taking the necessary to correct the problem, but now Twitter just said that and made the necessary corrections.
Twitter has surpassed estimates and forecasts, Curling that plans to earn from $825 million to $885 million in the first quarter. Analysts on average forecast sales of $868,9 million
Things are going well, therefore, the cost of Twitter will increase by 20% in 2020: the number of employees will grow by 20% and will be built a new data center. Just three years ago, Twitter was going in the opposite direction, reducing staff and selling assets to other technology giants such as Google to achieve profitability.
After almost 12 years of losses, Twitter is the second year in a row fixes the profit in 2019, the year the microblogging service has received a net profit of $1.47 billion. Profit excluding some items in the fourth quarter was $135 million, or 17 cents per share, the company said.
Twitter this year will face the challenges ahead of the Olympic games and US presidential elections. Twitter often refers to a major world event as an opportunity to increase advertising revenue and increase its user base, although the company also said it will not sell political advertising ahead of the elections in the US in 2020.