Photo: Omar Marques/SOPA Images/LightRocket/Getty Images

Twitter's stock was up nearly 4% in pre-market trading Friday, after the company said it added more "monetizable" daily users than investors had anticipated.

Yes, but: The company said it has been making investments in health and safety features on the platform, and forecasted that those investments would increase operating costs by 20% over the course of the entire fiscal year.

Why it matters: Part of Twitter's turnaround story over the past two years since going public in 2013 is that it's been able to consistently turn a profit. These kinds of investments may continue to eat at the company's margins moving forward.

  • In a statement, Twitter CEO Jack Dorsey said that health remains Twitter's top priority and that the company's investments resulted in an 18% drop in reports of spammy or suspicious behavior.

By the numbers, via CNBC:

  • Earnings per share: 20 cents, adjusted, vs. an expected 19 cents per share, per a Refinitiv survey of analysts.
  • Revenue: $841 million vs. an expected $829.1 million, per Refinitiv
  • Average monetizable daily active users (mDAUs): 139 million

Between the lines: This was the first quarter in which Twitter stopped reporting a monthly active usage metric, after the company missed its analyst expectations during the two prior quarters.

  • Its new metric is called "monetizable daily active usage (mDAU)," which the company says takes into account whether a user was exposed to advertising.
  • The company said ad engagements were up 20% year-over-year, suggesting improvements to its ad products are working.

Be smart: Despite gains, Twitter's daily active user base is smaller than its peers, and it is much more international, which is typically tougher to monetize. For comparison, Snapchat said Tuesday that it now has 203 million daily active users, while Facebook has 1.59 billion.

Go deeper: How Jack Dorsey plans to change Twitter

Go deeper

Updated 20 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9 a.m. ET: 33,138,963 — Total deaths: 998,380 — Total recoveries: 22,953,639Map.
  2. U.S.: Total confirmed cases as of 9 a.m. ET: 7,116,455 — Total deaths: 204,762 — Total recoveries: 2,766,280 — Total tests: 101,298,794Map.
  3. States: 3 states set single-day coronavirus case records last week
  4. Health: The childless vaccine — Why kids get less severe coronavirus infections.
  5. World: India the second country after U.S. to hit 6 million cases
30 mins ago - Technology

Exclusive: Where Trump and Biden stand on tech issues

Photo illustration: Aïda Amer/Axios. Getty Images photos: Win McNamee and Saul Loeb/AFP

Joe Biden has laid out a more concrete tech agenda whereas President Trump has focused on tax cuts and deregulation while criticizing tech firms for anti-conservative bias. That's according to a side-by-side analysis of the two candidates' tech records by the Information Technology & Innovation Foundation shared exclusively with Axios.

Why it matters: The tech industry needs to prepare for either four more years of Trump's impulsive policy approach or for a Biden administration that's likely to be critical of tech but slow to take action.

Dion Rabouin, author of Markets
2 hours ago - Economy & Business

Big Tech's share of the S&P 500 reached record level in August

Expand chart
Reproduced from The Leuthold Group; Chart: Axios Visuals

The gap between the weighting of the five largest companies in the S&P 500 and the 300 smallest rose to the highest ever at the end of August, according to data from the Leuthold Group.

Why it matters: The concentration of wealth in a few massive U.S. tech companies has reached a scale significantly greater than it was before the dot-com bubble burst.