Why Q4 Revenue Results Are Important For Twitter?

Twitter Made Money For The First Time in Q4 Results

Advertising Contributed Towards Twitter's Revenue Making

Social Media published date 9th February, 2018 Neha Baluni

twitter profit

Twitter has just released its revenue earnings for the final quarter of 2017, and the results are quite positive for the social media giant. Since the launch of this social networking service, the platform was not doing any good in terms of the profit it was having from the gradual growth. Twitter has a history of not making the money it carries the potential of. From analysts’ point of view, Twitter is expected to make earning of 14 cents per share, that on an average makes a profit of $686.1 million, put the giant social media site posted a total revenue of just $732 million.   

The platform also missed on monthly active users or MAU. Analysts, in this regards, expect the count of monthly active users to be 332.5 million, that is of course not what it is expected to be as Twitter only posted 330 million active users per month. However, Twitter is not able to meet up the expectations of the analysts, but it is growing up with a 4% profit share year-over-year. Additionally, the company’s average daily users are also growing with a 12% active users count year-after-year.

“Q4 was a strong finish to the year,” Twitter CEO Jack Dorsey quoted while announcing the results. “We returned to revenue growth, achieved our goal of GAAP 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 order to grow its profit share, Twitter, in past some time has added a slew of amazing features to drive the user growth exponentially. As a part of the similar attempt, the character limit for tweets has also been increased to 280. Twitter has also enabled threaded tweets along with allowing live-streaming of sports and the news events on user’s feed. With all these changes the engagement seems to go up for the platform but it has not enriched the profit-making share and the count of the users. Thus, all red is still red ink for the Twitter. 

At a time when millennials are liking Snapchat and Instagram more than anything else, it is a tough call for Twitter to enrich its users’ base and the profit-making share as well. But the revenue profit in the Q4 results may drive the desired result for the social media giant gradually.

Neha Baluni

Neha Baluni

Being a Senior Technical Writer at MobileAppDaily, Neha Baluni loves jotting down her piece of opinion for the advancing technology in mobile app world. Having a journalism background, she is a writer by day and a reader by night. Her passion for writing covers different categories of technical and non-technical genre. In addition to writing, Neha loves traveling a lot.

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