Financial results: Ad revenue slows to slow Twitter's third-quarter revenue growth to 9%
Twitter's third-quarter revenue was $824 million, up 9 percent from a year earlier, according to the company.Net profit was $37 million, down 95.6 percent from $789 million a year earlier.
Twitter, a micro-blog, reported its third-quarter results for the year ended Sept. 30, 2019.Twitter's third-quarter revenue was $824 million, up 9 percent from a year earlier, according to the company.Net profit was $37 million, down 95.6 percent from $789 million a year earlier.Twitter's net profit for the third quarter of last year included a tax-deferred asset-denominated allowance that gave the company a net income of $683 million.
Jack Dorsey, Twitter's chief executive, said in a statement:"Driven by continued product improvements, we have driven strong growth in monetized day active users, up 17% year-on-year.We're improving our relevance while testing ways to make it easier for people to find what they want on Twitter.We also continue to make progress on health and enhance our ability to proactively identify and remove abusive content.In the third quarter, more than 50 percent of tweets deleted for abusing content were deleted without a bystander or first-person report.”
Ned Segal, Twitter's chief financial officer, said:"Despite the challenges, this quarter validates our investment strategy for long-term growth.We still have a lot of work to do to provide better revenue products.We will continue to prioritize our advertising products and health and investments to drive the continued growth of active daily users.We remain confident that focusing on our most important priorities and delivering higher performance and better advertising formats will deliver better results for all of our stakeholders in the years to come.”
First, revenue growth slowed significantly
Twitter's third-quarter revenue was $824 million, less than market expectations, up 9 percent from $758 million a year earlier and down from 18 percent in the previous quarter and down from 29 percent a year earlier.It was also the first time since the first quarter of 2018 that the company's revenue was below double-digit percentages.Twitter's revenue growth slowed in the third quarter, driven mainly by slower growth in advertising revenue.Twitter's third-quarter data-mandated revenue and other revenue were $121 million, up 12 percent from $108 million a year earlier.
Second, the growth rate of advertising revenue slowed down
Twitter's advertising revenue in the third quarter was $702 million, up 8 percent from $650 million a year earlier and down from 21 percent in the previous quarter and 29 percent from a year earlier.
Third, U.S. revenue continues to grow
Twitter's Third-quarter U.S. revenue was $466 million, up 24 percent from $423 million a year earlier.Twitter's third-quarter international revenue was $358 million, up 10 percent from $335 million a year earlier.
Fourth, net profit fell sharply year-on-year
Twitter's third-quarter net profit was $37 million, down 95.6 percent from a year earlier, at $789 million.Twitter's net profit for the third quarter of last year included a tax-deferred asset-denominated allowance that gave the company a net income of $683 million.Twitter's third-quarter net profit was $137 million, down 16 percent from $163 million a year earlier.
Twitter's diluted earnings per share for the third quarter were $0.05, compared with $1.02 per diluted share in the same period last year.Twitter earned $0.17 per share in the third quarter, compared with $0.21 a year earlier, below market expectations of $0.20.
5. Adjusted EBITDA decline year-on-year
Excluding U.S. GAAP, Twitter's third-quarter adjusted EBITDA, excluding interest, tax, depreciation and amortization, was $263 million, down 10.8 percent from $295 million a year earlier. It was also the first year-on-year decline in the company's EBITDA since the second quarter of 2017.
Go to Discovery - "Take a look" And browse "Friends are watching"
Post edified to take a look