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Twitter’s third quarter net profit of 789 million US dollars

On the evening of October 25th, Beijing time, Twitter today released the third quarter financial report for the fiscal year ending September 20, 2018, with revenue of 758 million US dollars, an increase of 29%. Net profit was $789 million, compared with a net loss of $21 million in the same period last year.
Third quarter results:
Revenue was $758 million, a year-on-year increase of 29%.
Excluding the revenue of $7 million from TellApart‘s products in the third quarter of FY2017, revenue for the third quarter of this year (which is no longer included in TellApart’s revenue) increased by 30% year-on-year.
Expenditure was $631 million, an increase of 3% year-on-year. Based on non-GAAP, expenses were $547 million, an increase of 13% year-on-year.
Costs and expenses were $666 million, an increase of 14% year-on-year.
Net profit was $789 million, compared with a net loss of $21 million in the same period last year. The net profit margin was 104% and the diluted earnings per share was $1.02.
Deducting the $683 million deferred tax asset assessment allowance, the net profit was $106 million, the net profit margin was 14%, and the diluted earnings per share was $0.14.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $295 million, compared to $207 million in the same period last year. The adjusted EBITDA margin is 39%.
The average number of active daily users (DAU) in the third quarter increased by 9% year-on-year, while the second quarter increased by 11% year-on-year.
The average monthly active users (MAU) was 326 million, compared with 340 million in the same period last year and 335 million in the second quarter of this year.
Twitter CEO Jack Dorsey said: “In the third quarter, we worked hard to detect and delete junk and suspicious accounts, and achieved remarkable results. At the same time, we continue to introduce some feature upgrades. It makes it easier for users to track events and news. The strong performance in the third quarter shows that we continue to focus on the long-term healthy development of Twitter while pursuing the growth of users.”
Performance outlook:
Twitter expects adjusted EBITDA for the fourth quarter of FY18 to reach $320 million to $340 million.
EBITDA margins will reach 39% to 40%.
Capital expenditures will reach $60 million to $85 million, and stock incentive spending will reach $85 million to $90 million.