Twitter (NYSE: TWTR) reported its first-quarter financials before the market opens on Tuesday. The social media giant reported better-than-expected results, causing shares to soar by 12.7% shortly after the opening bell.
For the quarter, Twitter reported earnings of USD 0.37 per share on revenue of USD 787 Million. Refinitiv analysts projected earnings of USD 0.15 per share on revenue of USD 776.1 Million.
Twitter’s revenue rose by 18% year-over-year, which is primarily contributed by the Company’s ad revenue. Twitter reported that advertising revenue was USD 679 Million for the quarter, increasing 18% year-over-year. Total ad engagements increased by 23% while cost per engagement declined by 4%.
“We’re delivering strong results with ad revenue up 18% year-over-year, demonstrating Twitter’s unique value proposition for advertisers as the best place to launch something new or connect with what’s happening,” said Ned Segal, Twitter’s Chief Financial Officer.
Average monetizable daily active users (mDAU) were 134 million for the first quarter, up from 120 million the same period last year. Average U.S. mDAU were 28 million for the quarter, slightly increasing from 26 million year-over-year. Twitter’s user base largely stems from its international operations. International mDAU were 105 million, increasing from 94 million year-over-year.
Average monthly active users were 330 million, which declined from 336 million the same period last year. Average U.S. MAU were 68 million for the quarter, while international MAU were 262 million in the quarter. FactSet analysts expected Twitter to report MAU of 318 million.
As for the second quarter, Twitter expects to report revenue between USD 770 Million and USD 830 Million and operating income in the range of USD 35 Million and USD 70 Million.
Last month, Twitter launched a beta test app called “Twttr” where the Company’s aim was to hide some tweets on the interface to avoid cluttering. Furthermore, Twitter Chief Executive Officer Jack Dorsey has also made it a priority to reduce the abuse on Twitter’s platform.