Twitter has announced its Q2 2019 revenues of $841 million or equivalent to a year-over-year increase of 18 percent from $711 million in the same period last year.
Monetizable daily active users of the social networking site also increased to 139 million, which Twitter says is up by 14 percent compared to last year. The company declared its quarterly earning highlights in a letter to shareholders on July 26.
"We also continued our work to proactively identify and address malicious behavior, resulting in an 18% drop in reports of spammy or suspicious behavior across all Tweet detail pages, which show the replies to any given Tweet on our service," Twitter's CEO Jack Dorsey said in a statement.
Enjoying Profitable Quarters
Twitter pegged its EPS and net income at $1.43 and $1.1 billion respectively, attributing the huge increase to significant income tax benefit related to the establishment of a deferred tax asset for corporate structuring for certain geographies.
Twitter declared Q2 was a strong quarter with revenue up 18 percent year-over-year, driven by strength in the United States. Its revenue outperformance also resulted in better-than-expected profitability.
These figures surpassed Wall Street estimates and marked Twitter's seventh consecutive profitable quarter. At the day of the release of the company's financial and operational highlights, Twitter shares rose to $41.44 in New York, bringing gains for the year to 44 percent.
Revenue in the United States generated $455 million, an increase of 24 percent, while the total international revenue was at $386 million, an increase of 12 percent, or 16 percent on a constant currency basis. Japan remains Twitter's second-largest market, growing 9 percent and contributing $133 million, or 16 percent of the total revenue in Q2.
The San Francisco-based company's total operation costs and expenses reached $766 million, an increase of 21 percent year-over-year, resulting in operating income of $76 million and 9 percent operating margin.
More Monetizable Daily Active Users
The social networking site's new preferred audience metric — monetizable daily active users (mDAU), was 139 million, compared to 122 million in the same period of the previous year, and compared to 134 million in the previous quarter.
The average mDAU in the United States was 29 million compared to 26 million in the same period of the previous year and compared to 28 million in the previous quarter. Average international mDAU was 110 million, compared to 96 million in the same period of the previous year, and compared to 105 million in the previous quarter.
For the next quarter, Twitter said it expects total revenue to be between $815 million and $875 million, and an operating income between $45 million and $80 million.