Twitter revenues jumped to £725.31 million in the third quarter.
The social networking service earned 14.72 pence per share in the third quarter.
The monetizable daily active users of Twitter climbed 29% to 187 million.
Twitter Inc. (NYSE: TWTR) announced Thursday that its third quarter earnings and revenues for the fiscal year were better than expected. However, user growth was weaker than analysts’ expectations for Q3. Twitter’s financial results come just one day after its Chief Executive Jack Dorsey told the Senate Commerce Committee.
The company’s shares fell slightly below 15% in post-trading on Thursday. Including the price action, Twitter is now trading hands at £35 per share, up from a year ago when it was delayed at £17 per share in March. Are you interested in investing in the stock market online? Here is a simple guide to help you get started.
Twitters 3rd quarter financial results compared to analysts’ estimates
According to Refinitiv, experts had forecast the company’s sales of 602.10 million pounds sterling for the third quarter. Their estimate for earnings per share was capped at 4.65 pence. In its Thursday report, Twitter exceeded both estimates with higher revenues of £725.31 million and adjusted earnings per share of 14.72 pence in the third quarter.
The social networking service reported 187 million monetizable daily active users (mDAUs) versus the 195 million expected according to the FactSet. However, year-over-year mDAUs were still approximately 29% higher. In the previous quarter (Q2), Twitter mDAUs were only slightly lower at 186 million.
CEO Jack Dorsey commented on the results report on Thursday and said
“We increased our daily audience by 42 million last year as people around the world come to Twitter to find out about the issues and events that matter most to them. We help people find trusted sources of information by better organizing and bringing to the surface the issues and interests that bring people to Twitter”.
Twitter’s advertising revenues climbed 15% in the third quarter.
The San Francisco-based company reported that it generated £626.12 million in advertising revenue in the last quarter, representing annualized growth of 15%. Advertising engagement in the third quarter was 27% higher than last year. According to Twitter:
“The period around the U.S. elections is somewhat uncertain, but we have no reason to believe that revenue trends in September will not continue or even improve outside the election-related window.
Twitter performed modestly well last year with an annual gain of almost 10% on the stock market. At the time of writing this article, it is estimated at £32 billion.