Q3 Results: Twitter ad revenue grows by 29% to $650 million
Video ad format continued to account for half of the ad revenue, with Video Website Card increasingly becoming the format of choice with advertisers launching new product/service
Twitter on Thursday announced financial results for its third quarter 2018. The total Q3 revenue of the social media giant stood at $758 million, registering an increase of 29 per cent year-over-year. Of the total revenue, US revenue was $423 million and revenue from rest of the world stood at $335 million.
The total advertising revenue in Q3 stood at $650 million, which also shows an increase of 29 per cent year-over-year. The O&O advertising revenue was $617 million, which means a growth of 36 per cent year-over-year. Total ad engagements increased 50 per cent year-over-year and cost per engagement (CPE) decreased 14 per cent year-over-year.
“Video ad format continued to account for half of the ad revenue, with the Video Website Card increasingly becoming the format of choice when an advertiser launches a new product/service as we earn must-buy status with advertisers on campaign launches,” Twitter said in a tweet.
Q3 adjusted EBITDA was $295 million compared to $207 million in the same period of the previous year, representing an adjusted EBITDA margin of 39 per cent.
The average daily active users (DAU) increased 9 per cent year-over-year, compared to 14 per cent in the same period of the previous year and compared to 11% in the previous quarter.
Average monthly active users (MAU) were 326 million for Q3, compared to 330 million in the same period of the previous year and compared to 335 million in the previous quarter, impacted by a number of factors including: GDPR, decisions made to prioritise the health of the platform and not move to paid SMS carrier relationships in certain markets, as well as a product change that reduced automated usage and a technical issue that temporarily reduced the number of notifications sent.
In Q3, Twitter added more than 240 people to its team.
Commenting on the Q3 results, Twitter CEO Jack Dorsey in a release said, "We're achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service. We're doing a better job detecting and removing spammy and suspicious accounts at sign-up. This quarter's strong results prove we can prioritize the long-term health of Twitter while growing the number of people who participate in public conversation."
Ned Segal, Twitter's CFO, said, "Our third quarter results reflect our success with advertisers, delivering revenue growth of 29 per cent and better than expected growth across most products and geographies."
"We are demonstrating Twitter's unique value proposition for advertisers through innovative ad formats, better relevance and continued improvement in ROI. Advertisers are choosing Twitter to reach the most valuable audience when they are most receptive," Segal added.
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