Twitter’s fourth quarter earnings report for 2019 shows a growing user base but it also reveals a company that’s incurring larger expenses…
There’s some really good news for Twitter. And, some not-so good news, as well. The social microblog recorded a strong increase in one particularly important category. However, it came with a steep price. Overall, Twitter posted robust user growth while its outlays are still on the rise.
Twitter Monetizable Daily Active Users Up but Expenses Continue to Increase
Twitter’s Q4 2019 report includes an expansion among its mDAUs or monetizable daily active users of 21 percent, compared to the same period a year ago. This represents the strongest performance in this area in the last eight quarters. And, the company is forecast to rise by 8 percent for Q1 of 2020.
In the previous quarter, Q3 2019, Twitter suffered from bugs that affected advertisers’ ability to effectively measure ad engagement. As a result, the company’s operating income margin fell to 15 percent of revenue, compared to 23 percent in Q4 of 2018.
Although, the social site expects its capital expenditures to increase by a whopping 50 percent, compared to 2019. Most of this will be dedicated to a new data center that will be tasked with supporting additional audience and revenue growth.
Twitter now has an approximate market cap of $29 billion. The company finished last year with about $770 million of cash flow, representing a decline from $850 million last year. The company’s balance sheet holds approximately $4 billion in net cash.