Twitter revealed its 2019 Q4 earnings today and reported a $1.01 billion revenue in sales, the is the first time the company will be passing the one billion Dollar mark. This comes at a time the social media company moved away from having political ads on its platform.
“We reached a new milestone in Q4 with quarterly revenue in excess of $1 billion, reflecting steady progress on revenue product and solid performance across most major geographies, with particular strength in US advertising,” said Ned Segal, Twitter’s CFO. “We continue to see tremendous opportunity to get the whole world to use Twitter and provide a more personalized experience across both organic and promoted content, delivering increasing value for both consumers and advertisers.”
Twitter had an operating income of $153million for Q4 2019 but there were significant drops, however, in the company’s net income and EPS against the same period the previous year. In Q4 2018, Twitter reported a net income of $255 million with diluted EPS of $0.33 against its current earnings for q4 2019 which comes at a net income of $119 million with a diluted EPS of $0.15.
Explaining the dip, the company says there was an “income tax benefit from the release of deferred tax assets valuation allowance in the same period last year”. If that wasn’t available the “net income was $135 million, with adjusted net margin of 15% and adjusted diluted EPS of $0.17”.
Twitter raked in $885 from advertising which is its biggest revenue source; that’s an increase up to 12% from the previous year with its total ad engagements up by 29% during the same period and the cost per engagement down by 13%. Data licensing and other revenue sources totalled $123 million. The United State remains the company’s biggest market reporting a $591 million sales from that region, a 17% increase from the previous year but that only accounts for 31 million mDAUs.
Its daily monetizable active users also grew from 126 million the previous year to 152 million in Q4 2019; these are the number of people who log-in to the social media site and daily and see ads.