Twitter Posts Q4 As The First Profitable Quarter

Twitter Posts Q4 As The First Profitable Quarter

Twitter Posts Q4 As The First Profitable Quarter

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.

Revenue went up by two percent quarter-on-quarter to US$731 million, the first upward move since the last quarter of 2016. After beating on both the top and bottom line this morning, TWTR is trading around twenty percent above yesterday's close.

Even the attention brought to the micro-blogging site by US President Donald Trump broadcasting his thoughts was not enough to stem the exodus of US users.

Twitter delivered the first profitable quarter in its almost 12-year history - although it failed to increase its total monthly user base in the period.

In its report card for the three months ended 31 October, Twitter hinted that it may finally turn a profit, something that its previous inability to do so confused investors, considering the platform's adoption by a multitude of celebrities and politicians. But amidst this controversy, and Twitter's attempts to respond in an effective way, the company actually made money for the first time in the last quarter of 2017.

Twitter, Inc. (TWTR) is expected to post revenue of $572.74 Million in the current quarter, according to consensus of 23 analysts.

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Twitter says it has turned a profit for the first time last quarter, sending its shares surging. Q4 advertising revenues, meanwhile, were up 7%.

Twitter said revenue was helped by better ad targeting that raised clickthrough rates, or the ratio of users who click on a specific ad to the number that view it, and higher video ad sales. It reported $87 million in data licensing and other revenue, up 10 percent from a year earlier, outpacing advertising revenue which rose 1 percent to $644 million.

Twitter said it earned 19 cents per share in the fourth quarter on revenue of $732 million, which came in ahead of the Street's expectations of 14 cents per share on revenue of $686 million. Over the last quarter, insiders have sold 1,815,670 shares of company stock valued at $33,093,275.

Importantly, management also said it expects to be GAAP profitable for the full year.

There remains one clear sore spot at Twitter, though: monthly users. Twitter said its slow user growth could be a result of its recent crackdown on fake accounts. The company has gone through multiple rounds of layoffs since cofounder Jack Dorsey returned as CEO in 2015. Twitter signed 22 new live streaming partnerships in Q4 and hosted more than 1,140 live-streamed events. Twitter has admitted that it could do a better job of communicating its content-policing policies to users.

Despite hitting profitability, Twitter will soon have to navigate its future business without Chief Operating Officer Anthony Noto. "And we're excited about what we're going to be able to do in 2018".

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