Twitter’s monthly active user base decreased by 9 million to 321 million in Q4FY19. Of these, 66 million were US users, while 255 million users were from other countries. MAUs also fell 5% over the preceding quarter from 326 million users. Revenues increased by 24% year-on-year to $909 million, of which $791 million was advertising revenue, and $117 million was data licensing and other revenue.
Twitter said that MAUs fell because:
- it reduced the number of email notifications it sent
- it prioritized platform health
- of the decision to not move to paid SMS carrier partnerships in certain markets
- the changes it made to comply with GDPR
It’s worth noting that Twitter will stop disclosing MAUs after Q1 2019, because it is switching to mDAUs as the metric to reflect audience size and engagement.
- 53% or $415 million of its advertising revenue came from the US.
- Total US revenue increased by 24% to $506 million, and total international revenue also increased 24% to $403 million.
- Adjusted EBITDA: $397 million, up from $308 million in Q3FY18, Adjusted EBITDA margin was 44%
- Net income: $255 million, up from $91 million in Q4FY18
- Operating income was $207 million, up from $110 million in Q4FY18, and up from $92 million in Q3FY19
- Owned and operated (O&O) income advertising revenue was up 26% to $749 million
- Non-O&O advertising revenue fell by 18% to $42 million
- Net cash from operating activities was $1.3 billion, up 61% from $831 million
- Large to mid-tier customers represent a sizeable majority of ad revenue. Its self-serve channel, which is used by smaller and local businesses, continues to grow.
- Twitter sees a “large opportunity” in its self-serve channel, stating that “additional product investment [is] needed to fully capitalize on the opportunity to help these businesses reach their customers on Twitter.”
User metrics: DAUs
mDAUs are users who log in and access Twitter via the web or mobile app that are able to show ads.
- Monetizable daily active users (mDAUs) stood at 126 million users, up from 115 million in Q4FY18
- Twitter said mDAU growth was impacted by “health efforts” in Q4, and from removing spammy and suspicious accounts
- The company said that the spammy and suspicious accounts are more prevalent on web than on mobile. In Q4, mDAUs who accessed Twitter on desktop web declined YoY, but those users who accessed Twitter on mobile web and mobile apps continued to grow.
- Of the 126 million mDAUs, 27 million were in the US, and the rest 99 million were international users
- mDAUs grew 9% year-on-year with double digit growth in 5 out of 10 global markets
- Enabling users to switch from Home Timeline to Latest Tweets drove an increase in DAUs, conversation, and “overall satisfaction”
- The ratio of mDAUs to MAUs was 39%
Platform health and spam
- 16% year-on-year decrease in abuse reports from users who had an interaction with their alleged abuser on Twitter, and enforcement on reported content was 3 times “more effective”
- In 2018, Twitter said it strengthened account security, updated rules to address specific types of hateful conduct, taking new behavior-based signals into account when presenting and organizing Tweets, making violative Tweets more visible for breaking rules, expanding their health team through hiring and the acquisition of Smyte.
- Twitter said that in Q4, it suspended “millions” of spammy and suspicious accounts as its machine learning efforts improved, making it harder for people to game Twitter through multiple accounts and evading suspension.
- In response to a question on how Twitter made the above possible, CEO Jack Dorsey said that it is “getting better at applying machine learning and artificial intelligence to our internal tools” and also “delivering more product changes as well that allow us to better prioritize our Qs, so that we can move a lot faster and recognize the severity of reports much earlier, so that we can act upon them.”
- Video ad formats were the fastest growing ad format in Q4, driven by Video Website Card, in-stream pre-roll, First View ads
- Video was more than half of the ad revenue for Q4 and FY2018-19
- 100 live-streaming, highlight, Activity, and VOD agreements signed
Read more about mDAUs and not disclosing MAUs here: