Twitter has made a record-breaking revenue. All thanks to the users who made it possible for the micro-blogging site to record a milestone revenue of $1.01 billion in Q4 2019.
Speaking on the financial result, Twitter CFO, Ned Segal said the milestone was a reflection of the strong performance and steady progress of the company across many markets.
“We reached a new milestone in Q4 with quarterly revenue in excess of $1 billion, reflecting steady progress on revenue product and solid performance across most major geographies, with particular strength in US advertising.”
Breakdown of the $1.01 billion milestone: While the United States remained the highest revenue market for Twitter with $591 million, advertising accounted for the bulk of the company’s total revenue with $885 million.
Net income was logged at $119 million, representing a significant decline from the $255 recorded during the same quarter in 2018. Similarly, the earning per share dropped to $0.15 from the $0.33 recorded in Q4 of 2018.
The future: For the next quarter, Twitter has forecasted a drop in revenue and operating income. The future decline, according to Twitter, is because the company plans to invest in more technology especially engineering, product, design, and research. Twitter also plans to grow the user base by at least 20% this year.
Explaining the company’s plan, Twitter CEO, Jack Dorsey stated that the company was discovering paths to drive participation and engagement on the platform.
“I see Twitter more as an interest network rather than a social network. A rich timeline but also a path to discovering more, getting users to a position where they feel a lot more comfortable with participating in a conversation, not just Tweeting at the world but at those with a special interest,” Dorsey was quoted as saying.