Twitter shares were up more than 6% in premarket trading as the company reported earnings beating analysts expectations.Earnings Highlights:
Q1 was a solid start to the year with revenue up 18% year-over-year, reflecting particular strength in the US. Revenue outperformance, in combination with lower expenses, resulted in better-than-expected profitability, with operating income of $94 million and operating margin of 12%.
The company reported a number of product improvements in the first quarter, including the launch of a public prototype app — with an initial focus on making Twitter more conversational, and a new Twitter camera to more easily capture and share what’s happening. Average monetizable DAU (mDAU) was 134 million in Q1, up 11% year-over-year.
The company reported taking an even more proactive approach to reducing abuse on Twitter and its effects in 2019. Improvements in Q1 emphasized proactive detection of rule violations and physical, or off-platform, safety — including making it easier to report Tweets that share personal information, helping us remove 2.5 times more of this content since launch.
Reported Outlook:
For Q2, the company expects:
• Total revenue to be between $770 million and $830 million
• Operating income to be between $35 million and $70 million
For FY 2019, the company expects:
• GAAP operating expenses to increase approximately 20% on a yearover-year basis as we continue to invest for growth and support the top priorities we outlined at the beginning of the year: health, conversation, revenue product and sales, and platform
• Stock-based compensation expense to be in the range of $350 million to $400 million
• Capital expenditures to be between $550 million and $600 million
Read the full earnings report: https://tinyurl.com/yx8uekpg