Twitter said monetisable daily active users (mDAU) rose 11 percent from the year before to 134 million in the first quarter, according Telecompaper. Growth was stronger than in the previous quarter, although the total user numbers were lower.  
Better-than-expected revenues 
Revenues meanwhile lifted 18 percent to USD 787 million, with particular strength in the US, where revenue went 25 percent higher to USD 432 million. International revenue climbed 11 percent to USD 355 million, with Japan remaining the company’s second largest market, contributing 136 million, or 17 percent, to the total. Total advertising revenue meanwhile advanced 18 percent to USD 679 million, with data licensing and other revenue up 20 percent to USD 107 million. 
The stronger-than-expected revenues, coupled with lower expenses, resulted in higher-than-expected profits. The operating profit rose to USD 94 million from 75 million while the operating margin went to 12 percent from 11 percent. The net profit rose to USD 191 million from 61 million, with the net margin going higher to 24 percent from 9 percent and diluted earnings per share of USD 0.25. The net profit figure benefited from a net tax benefit. Excluding this, profit would have been at USD 66 million, with the adjusted net margin at 8 percent and adjusted diluted EPS at USD 0.09. Net operating cash went up to USD 352 million from 243 million year-on-year, with capex sliding to USD 81 million from 107 million. The adjusted free cash flow lifted to USD 271 million from 135 million. 
Expenses rise 18%
Expenses, which were expected to rise this year, did indeed increase by 18 percent to USD 693 million the quarter on the back of headcount growth and other investments. Cost of revenue grew 18 percent to USD 264 million, driven by infrastructure-driven expenses and video content costs. Sales and marketing expenses also advanced, up 19 percent to USD 143 million. Twitter said it has launched new ad metrics, to show returns on investments for advertisers. Total ad engagements increased 23 percent while cost per ad engagement (CPE) decreased 4 percent. Headcount lifted sequentially, with the company ending the quarter with 4,100 employees. 
Looking ahead, Twitter said it sees revenues for the second quarter at USD 770-830 million and the operating profit at USD 35-70 million. For the full year, the company is guiding for operating expenses up 20 percent from the year earlier on the back of continued investments. Stock-based compensations expenses are expected at USD 350-400 million and capex at USD 550-600 million.