Twitter share price up 15% after Q1 earnings revenue beat

Twitter share price is up by double digits after beating Wall Street estimates. Twitter’s Q1 earnings report exceeded expectations.

Twitter earnings:key figures

Twitter share price up 15% after Q1 earnings revenue beat

Twitter’s Q1 earnings per share were $0.37, far exceeding financial experts’ predictions of $0.16. Twitter’s Q1 revenue was $787 million, surpassing the $776.1 million Wall Street expected. The social media company’s monthly active users were 330 million, more than the projected 318 million users.

Twitter's user numbers are down from 336 million in 2018, but more than 321 million in its Q4 2018 report. Twitter touted its test of new features through a public app in a letter to shareholders.

‘We made 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,’ said Twitter.

Twitter chief executive officer, (CEO), Jack Dorsey, also explained how visitors testing new features on the prototype app helped raise Twitter’s Q1 earnings.

‘Generally, most of the people that have been testing the prototype app prefer it over the main Twitter production app. So it’s shown that we’re heading in the right direction, but we still have some work to do before we feel confident that we should put it in production,’ said Dorsey.

Dorsey also explained how the social media app wants to increase Twitter’s profits by protecting users from abusive tweets from other visitors.

‘We are reducing the burden on victims and, where possible, taking action before abuse is reported,’ said Dorsey.

How did Twitter Q1 results compare to other social media apps?

Compared to social media company Snapchat, Twitter’s Q1 earnings were positive. Snapchat also had user growth and increased revenue in its Q1 revenue report.

What is Twitter’s Q2 forecast?

Twitter’s Q2 forecast is estimated to be between $770-$830 million. That assessment is slightly below financial analysts’ estimates of $783.9-$853.6 million. In future quarters, Twitter will measure daily active users instead of monthly active users.

Twitter’s Q1 results show that innovation improves user engagement

Twitter’s Q1 revenue shows that adding new features and deleting spam accounts have helped users trust Twitter as a social media app. Twitter’s Q1 revenue show that offering users new features and targeted relevant content can increase profits.