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After several quarters of declining usage, Twitter surprised Wall Street with a solid quarter - mostly in non-GAAP terms - reporting revenue and EPS that beat expectations as well as user numbers that surprised to the upside.
Q1 revenue came in at $787 million, above the $775 million estimate, resulting in non-GAAP EPS of 37 cents (9 cents GAAP), also above the 15 cent consensus estimate. Q1 adjusted EBITDA came in at $290.6 million, $46MM higher than a year ago, and beating not only the consensus average of $245.7 million but the highest Wall Street forecast of $286 million.
User - Numbers - Monthly - Active - Users
User numbers are surprised to the upside: while Monthly Active Users declined by 6 million to 330 million (as both International and US users dipped from a year prior), the number was a sequential improvement...
... but the one number that Twitter says is more important, the "monetizable" DAUs print (think of it as non-GAAP users), posted a solid 14MM increase year over year. It was not clear just what adjustments go into "normalizing" this trendline, but it is safe to say that it is "a lot."
User - Data - Twitter - Models - Policy
Commenting on the user data, Twitter said that "we have deployed new machine-learning models to detect potential policy violations and we are sending those flagged Tweets to agents for review, proactively. This has resulted in Twitter taking down significantly more abusive content, much faster than before. Of the Tweets we take down for abusive content every week, approximately 38% of them are now proactively detected."
Twitter also said that it is "taking a more proactive approach to reducing abuse on Twitter and its effects in 2019, with the goal of reducing the burden on victims of abuse and, where possible, taking action before abuse is reported.... As a result, improvements in Q1 emphasized proactive detection of rule...
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