Twitter’s monetizable DAUs were up by 11% year-on-year to 134 million from 120 million in the same quarter last year and 126 million last quarter. Of the total mDAUs, 105 million were users outside of the US. Twitter claims mDAUs is a more accurate representation of how the business is growing, as opposed to MAUs, which have been stagnating over the last few years. Twitter’s total revenue was up 18% YoY this quarter to $787 million, of which $679 million was advertising revenue. Its US revenue exceeded international revenue, making up 54% of its total Q1 revenue. MAUs fell by 6 million over last year to 330 million, and 5 million of these MAUs were lost in markets outside the US. This is the last quarter in which Twitter will reveal MAUs, since mDAUs is its preferred metric.
- US mDAUs were 28 million, largely flat year-on-year and even last quarter
- International mDAUs were 94 million in the same quarter last year and 99 million in the previous quarter
CEO Jack Dorsey says health is first priority
Twitter claims to have worked on proactive detection of rule violations, and has made it easier to report tweets which share personal information, helping it remove 2.5 times of such content. 38% of abuse content taken down every week is now proactively detected using machine-learning models. The company said it will work on making its login and sign-up process more foolproof to reduce abuse and malice.
- To make Twitter more conversational, the company released a prototype app called ‘twttr’ earlier in Q1,
- Dorsey said health as the number one priority will lead ultimately lead to growth, to make Twitter ‘more relevant to users’ around fine-tuning content for relevance, specifically in the home timeline and notifications. Twitter will then look at changes in products such as events, interest and topics. “We want to make it as easy to follow an interest, to follow an event as it is today to follow an account.”
- Twitter is internally experimenting with a new onboarding experience for new users that’s focused on interests, events, and topics.
Metrics in Q1
- Costs and expenses increased 18% YoY to $693 million
- Japan remains the company’s second largest market, growing 16% and contributing $136 million, or 17% of total revenue in Q1
- Total ad engagement increase 23% due to higher click-through rates and higher ad impressions. Cost per engagement decreased 4% YoY
- Net income $191 million, and net margin of 24%
- US revenue increased 25% YoY, while international revenue increased 11% YoY
- Video ad formats from Video Website Card and in-stream pre-roll ads show notable growth
- Large to mid-tier customers represent a majority of Twitter’s ad revenue, its self-serve channel continues to deliver growth off a smaller base
- Cost of revenue grew 18% to $264 million, driven by increased infrastructure-related expenses and video content costs
- Sales and marketing expenses grew 16% to $206 million