Despite its declining user base, Twitter smashes 4Q18 revenue expectations

The social media giant has reported 4Q18 revenues of $909m and an overall revenue of $3bn for the year despite the number of monthly users failing to reach an already conservative estimate

8Feb

Twitter has reported 4Q18 revenues of $909m, up from 24% a year ago, smashing analyst's predictions of a revenue of $859.5m during the period. The social media colossus also reported diluted earnings per share of $0.33, up from the predicted $0.25, and a net income of $244m.

It also announced that its 2018 revenue exceeded $3bn, a year-over-year increase of 25%.

The company put its financial success down to "consistent strategy and solid execution", as well as its ability to demonstrate its value proposition for advertisers as "the best place to launch something new or connect with what's happening".

"2018 is proof that our long-term strategy is working," remarked Twitter CEO Jack Dorsey. "Our efforts to improve health have delivered important results, and new product features like a single switch to move between latest and most relevant Tweets have been embraced by the people who use Twitter.

"We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service."

Despite the company's strong financial growth last year, Twitter has struggled to maintain user growth, slumping to 321 million monthly active users and falling short of estimates that were already anticipating a decline. As a result, shares are down more than 7%.

Twitter stated that the declining use of its platform is due to "product changes that reduced the number of email notifications sent, as well as decisions we have made to prioritize the health of the service and not move to paid SMS carrier relationships in certain markets, and, to a lesser extent, changes we made to comply with the GDPR in Europe".

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