Management's decision to prioritize the health of its platform is part of its commitment to remove "questionable accounts".
Those costs could weigh on margins and future earnings, other analysts say.
Twitter also expects capital expenditure of between $550 million and $600 million in 2019, well above analysts' average estimate of $415 million. The number of daily users grew 9 percent year over year to 126 million in the fourth quarter, Twitter said.
Social media company Twitter released its fourth quarter earnings today, and inside the report was a number that the company had never released before. Revenue rose from $723 million in the fourth quarter of 2017, to the fourth quarter of 2018.
"The dip in MAUs also shouldn't be a surprise as Twitter publicly announced in mid-2018 that it was making more-aggressive efforts-though the work is far from done-to clean up the bots and fake users on its social network", Forrester analyst Jessica Liu wrote in an email to Barron's. For instance, earlier this week Snapchat reported that it has stopped shedding users and is keeping the service afloat at 186 million daily users - but it's not clear how many of those daily users are monetised by Snapchat.
"So, starting this quarter, in addition to sharing the growth in mDAU as we have since 2016, we are disclosing the absolute number of average mDAU (previously referred to as DAU), for both the United States and worldwide markets", said Twitter.
Total advertising revenue surged 23 percent to $791 million in the quarter, with more than half of that figure coming from video ads placed by corporate clients. So, where does that it leave Twitter in increasing DAUs from a shrinking pool, points out R.W. Baird analyst Colin Sebastian, who has a Neutral rating and $35 price target on Twitter shares.
FILE PHOTO - A 3D-printed logo for Twitter is seen in this picture illustration January 26, 2016. The company expected a total revenue of between $715 million and $775 million for the first quarter of 2019; according to IBES data from Refinitiv, the midpoint of that figure range was below the average analyst estimate of $765 million. $791 million of that figure comes from advertising revenue, split $425 million in the U.S. compared to $366 internationally - while data licensing making up the other $117 million.
Twitter shares sputtered and then fell sharply after the report, dropping as much as eight per cent in pre-market trade.
Whitaker: I Won't Testify Unless Dems Drop Subpoena Threat
He asked Whitaker to consult with the White House ahead of the hearing and tell the committee whether he would invoke privilege. Andy Biggs (R-Ariz.), who presented the amendment to add Rosenstein's name to the subpoena authorization.
Mass. upholds Michelle Carter's involuntary manslaughter conviction
Conrad, then 18, took his own life after filling his parked truck with carbon monoxide from a generator in a auto park in 2014. The trial judge found Carter caused Roy's death when she instructed him to get back in a truck filled with carbon monoxide .
New Orleans Pelicans trade Nikola Mirotic to Milwaukee Bucks
According to Wojnarowski, the Pistons are also involved in the trade but their return is not immediately clear. Mirotic, who is making $12.5 million this season, will be an unrestricted free agent this summer.