Published: Thu, April 26, 2018
Tech | By Constance Martin

Twitter boosts revenue by 21%, profits up too, beats Wall Street expectations

Twitter boosts revenue by 21%, profits up too, beats Wall Street expectations

The company reported itsfirst net profit last quarter. It also increased its holding in Amazon Com Inc (NASDAQ:AMZN) by 6,500 shares in the quarter, for a total of 14,000 shares, and has risen its stake in Mplx Lp (NYSE:MPLX).

Despite high-profile users like the US President Donald Trump, Twitter has struggled to attract people.

First-quarter revenue reached $665 million, which represented an increase of 21% year-over-year.

USA revenue had a marginal lift of 2%, while global revenue had a year-on-year increase of 53% and accounted for 48% of the total. Both revenue and adjusted earnings per share beat analysts' estimates.

Although the company shot past the $606 million in revenue analysts had been expecting Twitter to generate this quarter, it seems that investors remain nonplussed about its successes. It reported 69 million monthly active users in the US, slightly short of the estimated 70 million. Growth has been faster overseas as Twitter added 5 million people outside the USA with strong growth in Asia.

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First-quarter expenses not including stock-based compensation rose 10 per cent. Twitter has been cutting stock-based compensation, and total expenses were flat as a result. Twitter has made some major investments in broadcasting live events and shows from news to concerts using videos, and selling video ads in a bid to provide more engagement on the platform. the efforts paid off and videos contributed to more than half of ad revenue, amounting to $575 million, in Q1 2018.

Twitter early Wednesday reported better-than-expected first-quarter earnings after posting its first quarterly profit in the fourth-quarter report. The stock decreased 3.91% or $1.221 during the last trading session, touching $29.999.Twitter, Inc. has volume of 24.83M shares.

Twitter posted its second consecutive profitable quarter on Wednesday thanks to renewed growth in its ad sales business. Weiser wasn't particularly enthused about Twitter's results or what it may report down the road, calling the company "a durable, if niche-y (but highly differentiated), platform for digital advertising". Since the revelation that tens of millions of Facebook users had their data accessed many users announced that they would exit Facebook.

Jack Dorsey, chief executive of Twitter, said: "We grew our audience and engagement, marking another quarter of double-digit year-over-year DAU growth, and continued our work to make it easier to follow topics, interests, and events on Twitter". Twitter, Facebook and Google are all facing calls for potential regulation on Internet companies following revelations that political consulting firm Cambridge Analytica harvested private data from some 87m Facebook users.

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