For the first time ever, Twitter has finally turned a profit
Feb 09 2018 by Cristina Jennings
The social network reported its fourth-quarter earnings today, February 8, and as expected, the company posted a modest profit, pulling in $91 million on $732 million in revenue. In the final quarter of the year, Twitter reported 330 million active users a month, a rise of 4% on 2016 but a figure that has remained stagnant since Q3.
The tally of users is closely watched by investors as a sign of future ad sales potential.
MAU was also impacted by increased information quality efforts, which are the company's overall efforts to reduce malicious activity on the service, inclusive of spam, malicious automation, and fake accounts.
Dorsey said that in the US, UK and Japan Twitter launched its new subscription advertising product Twitter Promote Mode (TPM). Marcus Capital LLC purchased a new position in Twitter in the fourth quarter valued at about $212,000.
Investment analysts at SunTrust Banks issued their FY2022 earnings per share estimates for shares of Twitter in a researchreport issued on Tuesday, Zacks Investment Research reports.
The first is that user numbers have plateaued, and the naysayers will no doubt point to the fact that Monthly Active Users (MAUs) grew only around four percent last quarter and missed expectations. Northern Trust Corp grew its holdings in shares of Twitter by 78.3% in the second quarter.
One of its other main problems is that user numbers are largely stagnant.
Shares of Twitter, Inc.
The company posted a bottom-line profit in its fourth quarter, the first time the company had a profitable quarter. The company also reported that it live streamed more than 1,140 events during the fourth quarter of 2017 with 60 percent of the views coming from a global audience, according to ZDnet. The company didn't provide earnings per share or revenue targets. Revenues too climbed two percent from $686 million a year ago.
The San Francisco-based social media giant reported Q4 earnings per share (EPS) of $0.19, which was $0.05 better than the Wall Street consensus estimate of $0.14. APC's distance from 20 day simple moving average is -0.85% and distance from 50-Day simple moving average is 8.87%.
Expanding the length of a tweet not only improved engagement among users, but also gave them more room to express their thoughts, Dorsey said. The company is likely still making up that shortfall. Given that TellApart contributed $40 million in revenue in Q4 2016 and $0 in Q4 2017 and that Twitter's off-platform ad revenue declined by $34 million in Q4 2017 compared to Q4 2016, the non-TellApart piece of its off-platform ad business may have actually grown in the quarter.
"Advertisers who had access to the new compose experience created 26pc more Promoted Tweets and launched 13pc more campaigns, spending 23pc more on Twitter".