MASTERCLASSING

Twitter shares spike as the company reports a strong second quarter

Alyssa Clementi

Twitter saw a surge in share prices during early-morning trading today, after announcing the social media company had brought in $841m in revenue in Q2 2019, compared to the expected $829.1m from analysts. Following the announcement of its 18 per cent year-over-year increase in revenue, Twitter share prices jumped nine per cent.

Because of its unexpected revenue, the social media giant also saw an increase in profitability, highlighting an operating income of $76m and operating margin of 9 per cent in Q2 2019. Advertising brought in another surge of funding, with total advertising revenue reaching $727m, an increase of 21 per cent year-over-year.

“Year-over-year growth accelerated in the US, with ad revenue growth of 29 per cent compared to 26 per cent last quarter. Video ad formats continued to show strength, notably from our Video Website Card, In-Stream Video Ads, and First View ads. Data licensing and other revenue totaled $114m, an increase of four per cent,” said the company.

Twitter also included a new metric in its report this quarter, the average number of monetizable daily active usage (mDAU), which hit 139m in Q2, a 14 per cent jump year-over-year. The company attributes this growth to product improvements made in the past quarter, including optimizing Home feeds and the notification tab.

“We continue to make progress on health. In Q2 we made our rules easier to understand and continued our work to proactively identify and address malicious activity, resulting in an 18 per cent drop in reports of spammy or suspicious behavior across all Tweet detail pages, which show the replies to any given Tweet on our service,” the report added.

Mazen Hussain, director of paid media & creative, Croud commented: “Twitter is already investing in cleaning up its platform, using machine learning and algorithms to monitor abuse and remove any controversial content – including adding disclaimers to world leaders’ tweets that break community standards. It’s an ongoing battle but brand safety is a crucial consideration for advertisers. It’s also invested in its website as recently as last week, revamping the user experience and making it more user friendly.”

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