Strong demand outside of the US has powered Twitter to a second consecutive quarter of profit continuing a sharp turnaround that began in the second half of 2017.
The company reported Q1 revenue of US$655 million, up 21% on the first quarter of 2017. The majority of this comes from ad sales, which were also up 21% to US$575 million.
Twitter reported net income of US$61 million; a year ago the company reported net loss of US$62 million.
US revenue had a marginal lift of 2%, while international revenue had a year-on-year increase of 53% and accounted for 48% of the total. Daily active users increased by 10% year-on-year.
Monthly active users on Twitter increased 3% year-on-year due to growth in international users as US active users were marginally down on Q1 2017.
“We accelerated revenue growth in the first quarter with total revenue up 21% year-over-year and owned-and-operated ad revenue up 28% year-over-year, driven by continued strong ad engagement growth, improved ROI and better sales execution,” Twitter CEO Jack Dorsey said in an investor presentation.
“We also drove GAAP profitably for the second consecutive quarter with net income of US$61 million and net margin of 9%.”
Twitter CFO Ned Segal said Twitter has had strong interest in in-stream video ads as well as incremental revenue growth in its new ad formats Video Website Cards and Video App Cards. Video ad formats now account for more than 50% of ad sales.
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