Twitter reported its first ever year-over-year decline in revenue growth for its first quarter earnings on Wednesday, but still managed to beat analysts' expectations across the board and boost its shares more than 10% in pre-market trading.
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Twitter's revenue growth slowed for the first time last quarter, but it still managed to beat expectations across the board (TWTR)
Twitter reported its first ever year-over-year decline in revenue growth for its first quarter earnings on Wednesday with $548 million and $0.11 EPS.
The company beat expectations of $0.01 EPS with $0.11 EPS and $512 million in revenue with $548 million. It also blew past user growth estimates of 2.3 million by adding 9 million more monthly actives.
Here are the key numbers from Twitter's Q1 earnings:
- Earnings per share (adjusted):
- Revenue:
- Monthly active users:
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In its letter to shareholders, Twitter attributed its higher-than-expected user growth to recent moves toward simplifying its product, like its new Explore tab, and squashing abusive behavior with new moderation and reporting tools.
Still, the company said it expects revenue growth to continue to "meaningfully lag audience growth in 2017."
"We believe, however, that executing on our plan and growing our audience should result in positive revenue growth over the long term," Twitter wrote.
Shares of Twitter immediately surged over 10% in pre-market trading on Wednesday.
The DAU growth story
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Twitter executives heavily touted the company's daily active user growth in a conference call with analysts on Wednesday, noting that growth was up 14% from the previous quarter.
But Twitter has yet to disclose its actual daily user number like Snapchat and Facebook have, which suggests that growth may not yet be impressive enough to please investors. A 14% increase means that Twitter's DAUs growth is outpacing its monthly user growth.
Twitter COO Anthony Noto said that the company benefited from “resurrected users” following “more political accounts in Q1." During Twitter's previous fourth earnings call, Noto said that President Trump had "
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