Social Media Platform, Twitter said it has recorded milestone revenue of $1.01 billion in its 2019 Q4 report. The revenue marks the first billion-dollar return for the company in a quarter.
According to Twitter Chief Financial Officer, CFO, Ned Segal, the milestone was a reflection of the strong performance and steady progress of the company across many markets.
Segal said: “We reached a new milestone in Q4 with quarterly revenue in excess of $1 billion, reflecting steady progress on revenue product and solid performance across most major geographies, with particular strength in US advertising.”
Similar to the last quarter, Advertising accounted for the bulk of the company’s revenue, totalling $885 million. The US remained Twitter’s highest revenue market with $591 million.
However, net income was logged at $119 million, representing a significant decline from the $255 recorded during the same quarter in 2018.
Similarly, the earning per share, EPSm, also dropped to $0.15 from the $0.33 recorded in Q4 of 2018.
This quarter was, however, better in comparison to Q3 of 2019 when Twitter recorded losses both on income and revenue due to several advertising-related glitches.
Also, this quarter recorded one of the fastest growths of monetisable daily active users, mDAU. The mDAU for Q4 was recorded at 152 million, a significant 21percent increase compared to 126 million recorded during the same period in 2018.
For the next quarter, Twitter forecasts a drop in revenue and operating income. The operating income for the current Q4 was $153 million.
This is because the company plans to invest in more technology especially engineering, product, design, and research. It also plans to grow the user base by at least 20 percent this year.
Twitter CEO, Jack Dorsey further elaborated that the company was discovering paths to drive participation and engagement on the platform.
Dorsey said: “I see Twitter more as an interest network rather than a social network. A rich timeline but also a path to discovering more, getting users to a position where they feel a lot more comfortable with participating in a conversation, not just Tweeting at the world but at those with a special interest.”