Twitter’s Q2 Earnings Report 2019 – The Buyer’s Journey 82

As marketers we use a lot of platforms for our marketing efforts. This is the fifth in a series of episodes focusing on the Q2 earnings reports of those platforms. Today, we’re looking at Twitter’s Q2 earnings report and we’ve got a breakdown of everything you need to know.

Q2 Earnings Report Quick Numbers

Here are a couple quick-hit numbers on one of the largest social media platforms via Laura Feiner on CNBC:

  • Earnings per share: 20 cents, adjusted, vs. 19 cents per share expected, per Refinitiv survey of analysts
  • Revenue: $841 million, vs. $829.1 million expected, per Refinitiv
  • Average monetizable daily active users (mDAUs): 139 million

An In-Depth Look

Revenue is seeing great improvement for Twitter, up 18% year-over-year. Twitter accounts this increase to due domestic growth. During Q2, Twitter reached an average of 139 million monetizable daily active users (mDAUSs), a 14% increase fomr Q2 2018. Domestically, there was an average of 29 million mDAUs, which is a 10% increase year-over-year.

As a a reminder, Twitter changed reporting metrics last quarter from monthly active users (MUAs) to monetizable daily active users (mDAUs). Twitter says these are users who “log in and access Twitter on any given day through or our Twitter applications that are able to show ads.” Feiner reports that “Twitter’s decision to stop disclosing MAUs came after the company missed analyst estimates on the metric for two straight quarters. Twitter blamed the decline on tweaks it made ‘to prioritize the health of the platform’ as well as the European Union’s General Data Protection Regulation and a purge of ‘locked’ accounts meant to get rid of bots, among other factors.”

The company explicitly said that mDAUs aren’t comparable to disclosures from other social media companies, such as Facebook. Their reasoning is that their metrics are, “a more expansive metric that includes people who are not seeing ads.” Because of this, Twitter’s mDAU figure is much smaller than other metrics from Facebook, Snap, etc.

Twitter’s ad revenue is also growing, up 21% (or 23% on a constant currency) to $727 million. In the U.S. specifically, ad revenue growth increased 29% compared to the 26% in Q1 2019.

“We feel like our messages of launching new products and services and connecting what’s happening continues to really resonate with advertisers,” CFO Ned Segal told analysts on the earnings call.

Final Thoughts

We discuss in the podcast the fantastic trajectory we see Twitter taking. All of us use the platform and love its ability to quickly give us information. If Twitter can figure our how to ensure new users come into the platform, we expect Twitter to continue to grow.

Check out our next episode where we’ll discuss Spotify and LinkedIn’s Q2 earnings report.

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