Twitter Rallies On Growth In Users, Revenue


Twitter shares rallied on Friday after a second-quarter update showed better-than-expected revenues and a growth in users even as the social network cracks down on fake accounts and inappropriate content.

The short messaging service said profit rose to $1.1 billion, lifted by a one-time tax benefit, up from $100 million a year earlier. Excluding special items, profit was $37 million.

Revenue was better than expected at $841 million, up 18 percent from a year ago. The vast majority of revenues came from advertising.

Twitter’s new measure of its user base — monetizable daily active users — was 139 million, compared to 122 million in the same period last year.

“Q2 was a really strong quarter for us,” chief executive Jack Dorsey said in a conference call.

“We’re really proud of our results and also the work and the effort that went into it.”

Shares in Twitter rallied 5.3 percent in pre-market trades following the release.

“Twitter’s value proposition to advertisers is not the size of its audience, but the engagement of its users,” said eMarketer analyst Jasmine Enberg.

“The strong growth in monetizable daily active users shows that Twitter users are sticking with the platform, and that should resonate with advertisers.”

Twitter stopped using a count of “monthly active users,” which was 330 million earlier this year, in favor or the new measure of daily users on the mobile app or website who see ads in their feeds.

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Olugbenga Ige is an alumnus of the prestigious Adekunle Ajasin University, Ondo State and The Polytechnic, Ibadan. Gbenga is an experienced reporter at Concise News, a new media enthusiast, and fine-grained media influencer.

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