Tuesday, April 23, 2019
Twitter’s Tweaks Boost Earnings
Twitter Inc. reported record daily users and rising profit on Tuesday, signs that the company’s product tweaks are stabilizing the business, reports The Wall Street Journal.
The number of daily users rose 6% in the first quarter to 134 million from 126 million in the previous three months, driven primarily by strength in international markets.
Revenue rose 18% to $787 million in the first quarter, up from $665 million a year earlier. The result was a sequential decline from the fourth quarter, which is typically the heaviest spending period for advertisers, but topped analyst projections of $774 million, according to FactSet.
Net income in the first quarter increased to $191 million, from $61 million a year earlier, and marked the company’s sixth consecutive quarter of profitability after years of sustained losses.
Central to Twitter’s changes is an effort to promote healthy discourse, after the company has struggled to rein in toxic behavior.
The company is also trying to make the platform more conversational.
Twitter Chief Executive Jack Dorsey said his company is now taking a more proactive approach to addressing abuse and its effects on the platform.
Earlier this month, Twitter announced that it was using technology to proactively surface abusive tweets to its teams for review. Previously, Twitter users had to flag offending tweets before the company would remove them. Now, about 38% of abusive content that Twitter takes down is surfaced by the machine learning algorithms.
Posted 7:59:00 AM