Mon, 19 Nov 2018

Twitter posts first ever quarterly profit in 12 year history

By Sheetal Sukhija, Manila News
09 Feb 2018, 13:27 GMT+10

CALIFORNIA, U.S. - Beating Wall Street expectations, Twitter said on Thursday that it has posted its first-ever quarterly profit in its 12-year history.

The microblogging site returned to revenue growth in the fourth quarter, even though it failed to increase its total monthly user base during the period.

Further, analysts pointed out that even though the financial results of the social network company had managed to beat Wall Street expectations, some major problems continue to exist on the site. 

Twitter is said to have posted making $91 million profit on fourth-quarter revenue of $732 million, up two percent year-over-year and reversing the trend of declining top-line numbers over the past few quarters.

The results come as a positive development for the company that has been dealing with accusations of allowing abuse, fake accounts and attempts by Russian agents to spread misinformation continue on the site, despite multiple governments raising issues. 

The troubles for the site have been further compounded by stagnant user growth.

In a bid to deal with the problems, Twitter said that it had introduced a slew of new measures to weed out abusive accounts. 

Meanwhile, announcing the results on Thursday, Twitter CEO Jack Dorsey said, “Q4 was a strong finish to the year. We returned to revenue growth, achieved our goal of GAAP (generally accepted accounting principles) profitability, increased our shipping cadence, and reached five consecutive quarters of double-digit DAU [daily active user] growth. I'm proud of the steady progress we made in 2017, and confident in our path ahead."

In pre-market trading, Twitter shares jumped 15 percent. 

Analyst Michael Pachter of Wedbush Securities said, “The revenue number was up year-over-year for the first time in several quarters, which is a good sign.”

However, Wedbush added that flat growth in monthly users from a quarter earlier was nonetheless a warning sign.

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