Twitter posted $ 1 billion in quarterly revenue for the first time, outperforming expectations.
According to Arabia Net, the efforts made by the company have made its platform attractive to more users, which has led to a 14% increase in the company's shares in early trading.
Twitter recorded most of its revenue growth in the United States, a major market where the company will face scrutiny this year about how it handles misinformation ahead of the US presidential election, scheduled for November 2020.
The company continued to make efforts to promote new subscriptions, through measures such as allowing people to follow topics, and trying to clean up offensive content. Late last year, the company launched a feature that allows users to hide some responses to their tweets.
Twitter also focused on related content and notifications, which boosted the average daily active users who could be monetized, or users who viewed ads when logged in via twitter.com or Twitter apps on mobile devices. The number of these users increased to 152 million in the fourth quarter to December 31, 2019 from 126 million in the previous year, exceeding the average forecast of analysts of 147.5 million.
Twitter's quarterly revenue grew 11% from the previous year to $ 1.01 billion, also exceeding forecasts of $ 996.7 million.
Advertising revenue totaled $ 885 million, an increase of 12% year-on-year. However, the company expects first-quarter revenue from 2020 to be between $ 825 million and $ 885 million, well below Wall Street's estimate of $ 872.6 million.
Chief Executive Jack Dorsey said during a call to announce financial results with analysts: Introducing new features at a faster pace is one of Twitter's top priorities for this year.
And Twitter announced last November that it banned political ads amid increasing pressure on social media companies to stop accepting commercials, which contain misleading or wrong information. However, the demonstrations of the US state of Iowa a few days ago showed that the platform is still being used to spread false allegations of voter fraud.
Twitter said last Tuesday: It will start adding tags to tweets that contain forms of artificial content or fraudulently edited. It also said: It will deliberately remove any tampering content with the intention of misleading, including content that may threaten physical integrity, widespread civil strife, voter repression, or privacy risks.
