Twitter’s average monetisable daily active users (mDAU) increased by 20.6% to 152 million in Q4FY19 from 126 million Q4FY18, and 145 million in Q3FY19 (4.8% increase). While mDAUs in the US grew marginally sequentially to 31 million from 30 million, the international market saw mDAUs grow from 115 million in Q3 to 121 million in Q4.

Twitter said that the increase in mDAUs was due to improved machine learning models that put “more relevant” tweets in people’s timelines and notifications. Twitter had an operating income of $152.8 million, significantly up from $44.1 million in the last quarter, but down from $206.9 million in Q4FY18. The decrease in year-over-year operating income was “primarily due to higher personnel-related costs,” the company said in a letter to shareholders.

The company said that it saw a 27% decline in bystander reports on Tweets that violate its terms of service.

Revenue and ads

  • Revenue: Reached $1.01 billion — this is the first time that the company has surpassed the $1 billion revenue mark in a quarter.
  • Total US revenue: Increased 17% YoY to $591 million
  • Total international revenue: Increased 3% YoY to $416 million
  • Japan was Twitter’s second largest market after the US, in terms of revenue, contributing $139 million in Q4.
  • Total advertising revenue: Increased 12% YoY to $885 million
  • Data licensing and other revenue: Up 5% YoY to $123 million
  • US advertising revenue:  Totaled $509 million, an increase of 20% YoY
  • International ad revenue: Grew 3% YoY to $375 million
    • The company said that video ad formats “continued to perform well”.

Election integrity: Twitter said that in Q4, it allowed people to find original sources of political information by clearly identifying political candidates. It also reintroduced Election Labels, which were first launched during the 2018 US midterm election, and the platform now identifies candidates who qualify for the primary ballot for US House, US Senate, and gubernatorial races.

An upgrade to Lists imminent? During a call with investors, CEO Jack Dorsey said that the company is going to add more capabilities to Lists on Twitter, potentially allowing users to follow “other entities”, besides just accounts. He did not specify what these “other entities” could possibly be, but said that this would be one of the ways that Twitter can shift from being a “social network” to an “interest network”.

  • Twitter had launched the ability to share Lists on both iOS and Android and added account recommendations that suggest new relevant accounts to Lists in Q4.

Topics: As of December 31, 2019, there were more than 1,700 Topics in six languages, with new Topics being added each week, the company said.

  • In Q4, the platform had allowed users to follow topics, and not just users. Topics are suggested automatically on a user’s timeline, and can also be found through the Topics section in the side dashboard on mobile, or through searching for an available Topic.
  • Twitter said that it can potentially increase user engagement on the platform by paying “attention to the context that they happen to be in, such as location”.

Downloads: Letter to shareholders | Transcript