Twitter released its latest earnings report before opening bell this morning to duck the crowd of internet earnings reports coming after the bell, which includes Alphabet and Amazon. Twitter posted adjusted earnings of 13 cents per share on $616 million in revenue, coming out comfortably ahead of consensus at 9 cents per share and $604 million.
Twitter’s losses narrow
Twitter’s GAAP loss narrowed to $103 million or 15 cents per share from $132 million or 20 cents per share. Ad revenue grew 6% year over year to $545 million, with mobile ad revenue making up 90% of the total. Data licensing and other revenue grew 26% to $71 million. U.S. revenue increased 1% to $374 million, while international revenue grew 21% to $242 million. Adjusted EBITDA increased 28% to $181 million, while the adjusted EBITDA margin was 29%.
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The micro-blogging platform grew its monthly active user base 3% to 317 million, while its daily active user base accelerated to a 7% growth rate from 5% in the second quarter and 3% in the first quarter. Total ad engagements increased 91% due to increased ad load and an increase in the number of auto-play video impressions. Average cost per engagement declined 44% on the back of a greater mix of video engagements.
Twitter announces more restructuring, updates guidance
For the full year, Twitter expects adjusted EBITDA to be between $700 million and $715 million and the adjusted EBITDA margin on GAAP revenue to be between 27.5% and 28%.
Also this morning, the company announced further restructuring and more job cuts resulting in about a 9% reduction in the size of its global workface. The goal of the restructuring efforts is to reorganize Twitter’s sales, partnerships and marketing efforts. Twitter continues to aim for GAAP profitability next year.
“Our strategy is directly driving growth in audience and engagement, with an acceleration in yearover-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” Twitter Chief Executive Jack Dorsey said in a statement. “We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”
Shares of Twitter surged in premarket trades, climbing by as much as 4.4% to $18.05.