Twitter Has Its Second Profitable Quarter, Dismisses Data Privacy Concerns

Twitter Has Its Second Profitable Quarter, Dismisses Data Privacy Concerns

In related news, Director Evan Clark Williams sold 539,027 shares of the company's stock in a transaction on Wednesday, April 11th.

Twitter reported better-than-expected first quarter sales as it grew its daily and monthly active user base and its data licensing and enterprise business grew at a rapid clip.

Despite the popularity of Twitter domestically from users like U.S. President Donald Trump, Twitter has been expanding globally.

Global sales accounted for 48% of revenue, growing 53% year-over-year, compared with 2% in the US. Total revenue rose 21 per cent. Data licensing and other revenue totaled $90 million, an increase of 20% year-over-year.

"Video remains an important component of the experience on Twitter, allowing people to post relevant live broadcasts or video clips". Monthly active users in the USA increased by 1 million from the fourth quarter to 69 million.

"We continued our work to make it easier for people to follow topics, interest and events on Twitter", Dorsey told a conference call. Advertiser demand for in-stream pre-roll and mid-roll is growing, as is demand for video website cards, a direct response format that lets users click into a video ad for more information without leaving Twitter.

The social media sector is under intense pressure from lawmakers around the globe for inflaming political debates, allowing abusive language and failing to safeguard personal data.

While Twitter seems to have found a path for growth, Dorsey is being pressed to follow in the footsteps of Facebook CEO Mark Zuckerberg and testify before the USA congress about data privacy. It took significant steps to deal with slow user growth and rampant issues of abuse and harassment which had adverse effects on the company and its growth.

Shares of Google parent Alphabet Inc lost nearly 5 percent on Tuesday as a surge in costs during the first quarter drove what analysts said was its biggest ever contraction in gross margins.

"We face increasingly hard comparables in the second half of 2018 as we approach the anniversary of the broad-based recovery that began in the second half of 2017", Twitter said. On Tuesday, January 2 the stock has "Hold" rating by Canaccord Genuity.

And more of Twitter's growth is now coming from worldwide markets as the USA gets saturated.

Total US revenue was $347 million, an increase of 2% year-over-year.

Consensus estimates from Thomson Reuters had called for $0.12 in EPS on revenue of $605.36 million, and the first quarter of past year reportedly had EPS of $0.07 and $548.25 million in revenue.

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