Twitter released some encouraging earnings figures basically driven by user growth earlier today and the shares of the microblogging site jumped 10 percent on the news.
Here’s a breakdown of the figures;
- EPS: 11 cents a share vs. 1 cent a share expected
- Revenue: $548 million vs. $511.9 million expected
- Monthly active users: 328 million vs. 321 million expected
Monthly usage grew for the fourth consecutive quarter to 14 percent year on year and while some have attributed the user growth has been attributed to the US President Donald Trump’s frequent political tweets, Twitter CEO Jack Dorsey disagrees. He said the growth is a direct result of the recent changes to the site which has resulted in overall better experience. Twitter recently unveiled measures to combat abuse on its platform while changing the way we reply and mute offensive replies generally and this is just the beginning of changes to come.
Twitter Chief Financial Officer (CFO) Anthony Noto however speaking to CNBC attributed the better than expected revenue to Twitter phasing out less effective ad formats. “He also said revenue in this past quarter was from ad deals made six to 12 months ago, and since then the cost per engagement for advertisers has decreased.”
Twitter won’t completely rule out Donald Trump’s influence on its user figures. The CFO thinks there’s a correlation that can has remained unproven.