Twitter has pulled in one billion dollars in quarterly revenue for the first time. The revenue grew by 11 per cent from a year earlier to $1.01bn, also beating the expectation of $996.7m from the previous projections.
The high revenue is attributed to the tremendous efforts the company has made In the most recent days. Among them, it has made make its platform more user-friendly sending its shares up 14 per cent in early trading.
Prior, the company forecast it’s first-quarter revenue between $825m and $885m. The Wall Street had an estimate of $872.6m in revenues.
The companies CEO Jack Dorsey during an earnings call with analysts said,” Rolling out new features at a faster pace is one of Twitter’s top priorities for the year. The time it takes to go from an idea to shipping something remarkable to customers simply takes too long”
“2019 was a great year for Twitter. Our work to increase relevance and ease of use delivered 21% mDAU [(monetizable Daily Active Usage)] growth in Q4, with more than half of the 26 million mDAU added in 2019 directly driven by product improvements. Entering 2020, we are building on our momentum – learning faster, prioritizing better, shipping more and hiring remarkable talent. All of which put us in a stronger position as we address the challenges and opportunities ahead.” he added.
Twitter has also focused on relevant content and notifications which has boosted average monetizable daily active users.
The metrics rose to 152 million in the fourth quarter through December from 126 million the previous year. From the records, it has beaten the average analyst’s expectation of 147.5 million according to Aljazeera.
Twitter revealed that the firm’s revenue for the whole year was $3.46 billion which represents a 14 per cent increase. The yearly costs and expenses added up to $ 3.09 billion. This pulled down to an 11 per cent operation margin and operating income of $336 million.
The United States, which is its major market generated $591 million of revenue. This is an increase of 17 per cent from the previous year.
Further, this year’s goals are to increase its workforce up to 20 per cent or more in engineering, product design and research. Among other investments, Twitter foresees a new data centre this year.