Twitter reported a strong start to 2018, with better-than-expected profits and a return to sequential growth in users. Revenues rose 21 percent year-on-year to USD 665 million, with the company saying sales increased across all products and geographies. Video was the fastest growing ad format and accounted for over half of ad revenues.
Adjusted EBITDA increased to USD 244 million, ahead of the company’s guidance. Net profit improved to USD 61 million from a loss of USD 62 million a year ago, helped by a USD 21 million boost from the cut in US tax rates.
Average monthly active users (MAUs) rose to 336 million from 330 million in Q4 and were up 3 percent year-on-year. Average daily active users (DAU) grew 10 percent year-over-year.
For Q2, Twitter forecast adjusted EBITDA of USD 245-265 million. Over the full year, the capital expenditure budget is maintained at USD 375-450 million, after spending USD 107 million in Q1.
The company noted that comparisons will become more difficult in the second half of the year after its recovery started late last year. As as result, sequential revenue growth rates in the rest of 2018 will be more similar to those in 2016.