Twitter posts bigger 4Q profit, monthly user base slips

Twitter says it has 126 million daily users

Twitter says it has 126 million daily users

Twitter also has room to grow by converting people who use the site infrequently into daily users, she said, which would allow the company to boost its revenue without having to grow its overall user base.

Dorsey said the company's strategy is centered on four broad objectives: promoting healthy conversation on the platform, making it easier for users to participate in conversations, improving the platform for advertisers and focusing on new technology to improve the service.

Despite being much smaller than other social media platforms, Twitter continues to maintain daily user growth with a 9% increase in daily active users compared to the same time a year ago.

On Thursday, Twitter also reported $791 million in ad revenue in the fourth quarter of last year, an increase of 23 percent year over year.

Twitter has said it identified much less manipulation on its service during the 2018 US midterm elections from bad-faith actors located overseas than two years earlier during the presidential campaign.

"Video was more than half of ad revenue for Q4 and for 2018", Twitter said in a statement.

In its fourth-quarter 2018 earnings, Twitter revealed it has 126 million "monetisable" daily users, up from about 115 million a year ago. The company announced that after 2019's first quarter report, it will no longer report monthly users on the platform.

"Our mDAU are not comparable to current disclosures from other companies, many of whom share a more expansive metric that includes people who are not seeing ad", Twitter said.

Monthly active users totaled 321 million in the fourth quarter, in line with analysts' forecasts but down from 330 million a year earlier and 326 million in the third quarter. So, where does that it leave Twitter in increasing DAUs from a shrinking pool, points out R.W. Baird analyst Colin Sebastian, who has a Neutral rating and $35 price target on Twitter shares. The company in 2018 marked its first full year of profitability under generally accepted accounted principles.

That compares to Facebook's 1.5 billion daily users and Snapchat's 186 million.

Excluding some items, Twitter reported quarterly profit of 31 cents per share, beating the average estimate of 25 cents.

Twitter's slice of the digital-advertising market is expected to decline this year as Facebook and Alphabet 's (GOOGL) Google tighten their grip and (AMZN) makes significant strides, according to eMarketer.

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