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Advertisers Finding More Success on Twitter
By: Digiday
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The bad news: Twitter’s monthly active users declined 9 million since its second quarter as it focused on cleaning up the platform. The good news: Twitter has seen an uptick in advertising and profitability. Here’s what you need to know:

The key numbers:

  • 326 million monthly active users (down 9 million from the previous quarter and 4 million from the previous year)
  • 67 million monthly active users in U.S. (down 1 million from the previous quarter)
  • Profit was $106 million
  • 9 percent growth in daily active users from the year prior (down 2 percent from the previous quarter)
  • $758 million in quarterly revenue (up 29 percent from the year prior)
  • $650 million in advertising revenue (up 29 percent from the year prior)
  • Total ad engagements up 50 percent from the previous year
  • Cost per engagement was down 14 percent from the previous year
  • $302 million in ad revenue from international users

What Wall Street wanted
Twitter beat Wall Street’s revenue expectations, reporting $758 million this quarter versus $703 predicted. As to the user growth decline, Twitter had warned that would happen as it cleaned up the platform. Twitter’s stock immediately jumped 9 percent in pre-market trading and continued to climb to nearly 12 percent. When the market opened, the stock rose to more than 15 percent.

Fewer users isn’t horrible, for now
Twitter’s latest decline in monthly active users isn’t due to people’s disinterest in the platform, but rather four other reasons: the General Data Protection Regulation, prioritizing health of the platform, product changes to reduce automated usage and a technical issue that reduced notifications. On the earnings call, Twitter CEO Jack Dorsey emphasized the company’s efforts on lessening abuse, misinformation and echo chambers.


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About the Author
This article was published on Digiday.com.  A full link to the original piece is after the story. www.digiday.com
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