Tuesday, 25 September, 2018

Twitter posts profit for first time in 12 years

The offshore oil drilling platform called Gail operated by Venoco Inc. off the coast of Santa Barbara Calif. in 2009 Chris Carlson AP The offshore oil drilling platform called Gail operated by Venoco Inc. off the coast of Santa Barbara Calif. in 2009
Sherri Watson | 09 February, 2018, 01:50

Twitter Inc (TWTR.N) shares surged 22 percent at the market open on Thursday after it reported its first quarterly profit and better-than-expected revenue, helped by ads that better targeted users and sales growth outside the United States.

It's a hard won milestone for Twitter.

To make a proper assessment, investors seek a sound estimate of this year's and next year's earnings per share (EPS), as well as a strong sense of how much the company will earn even farther down the road. And it has cut beloved but pricey projects like Vine, a video sharing service.

"With an increase in both total revenue and advertising revenue in Q4, Twitter is definitely on the right path to regain commitment from marketers". Clearbridge Investments LLC boosted its position in shares of Twitter by 17.8% during the first quarter.

Twitter Inc shares rose $1.09 (+4.05%) in premarket trading Thursday following the report.

There remains one clear sore spot at Twitter, though: monthly users.

The increase in tweet length to 280 characters is believed to have increased the amount of time individual users spend on the platform, but has not encouraged previous users to return or become more active.

"We identified our most critical priorities and ensured that our resources were directed towards them". "We do believe that it is minimizing some of the complexities and some of the confusion around Twitter in general". Going forward, Twitter has also promised to permanently suspend accounts identified as the source of tweets featuring nonconsensual nudity.

Dorsey told a conference call that by relaxing the limits, "it minimizes some of the complexities" of using the platform and added, "more importantly it is enabling people to be more expressive about what's on their minds".

However, Twitter continues to face significant challenges in that turnaround story.

The company believes that continued strength in Asia Pacific coupled with improvement in certain EMEA markets backed growth in worldwide markets.

Despite a 4 per cent increase in monthly active users over the past year, the company saw no increase in the last three months, with the numbers described as "flat".

In fact, Twitter's audience in the US declined slightly. Its user base stood at 330 million, which is the same as Q3. "We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double digit daily active user growth". But Twitter continues to declines to provide a hard number for its daily audience.

Average monthly active usage was 330m for the fourth, up 4pc and Twitter said that it was affected by Apple's Safari browser's app integration, which affected 1m monthly users and 1m internationally.