Trump tweets don't help: 1st Twitter revenue drop since IPO

Despite stiff competition from Facebook and Snap, Twitter's monthly active users, one of the most closely watched metrics for analysts, increased 6 per cent, or 18 million, to 328 million in the first quarter from a year earlier.

Despite the company's quarterly revenue loss, Twitter saw its shares rise almost 9 percent to $15.94 in early pre-market trading on the New York Stock Exchange on the strength of its earnings beat. After several quarters of showing flat or anemic growth, Twitter said that it added 9 million new monthly average users in the latest quarter, the largest increase since 2015.

The company has been trying to convince advertisers that it can strengthen its user base and has launched new features, including live video broadcasting.

Twitter shares rose more than 11 percent in premarket trading after the report was released. Twitter sought for a sale a year ago but failed.

"We continue to expect revenue growth to meaningfully lag audience growth in 2017", the company wrote in a letter to shareholders Wednesday.

Of those hours, 51 percent were sports, 35 percent were news and politics, and 14 percent were entertainment, Twitter said.

The social-media platform beat on profit and revenue expectations, despite its first quarterly revenue decline.


Although the first quarter revenue growth saw an 8% decline as compared to that of corresponding quarter of past year, the revenues were good enough to beat the market's expectations.

Trump's tweets generate headlines on a daily - if not hourly - basis, ensuring Twitter is constantly in the news cycle.

Twitter is also doing a better job as rolling out new products, and meeting the needs of average users, said Dorsey.

Twitter's revenue dropped to $548 million, which is an 8 percent decline compared to the same period previous year. Dorsey pointed to the deployment of machine learning to show users tweets that are more relevant to them.

That's not exactly a small number of people but it pales in comparison to the almost two billion people that use Facebook, the 700 million that are now on Instagram and the 500 million over on Microsoft's LinkedIn.

The company reported that advertising revenue for the quarter was $474 million, a plunge of 17 percent year-over year.


Popular
  • Venezuelans press for elections as protests enter fourth week

    Venezuelans press for elections as protests enter fourth week

    Interior Minister Nestor Reverol called her "another victim of the Terrorist Right, which is full of hatred". But opposition leaders are rejecting calls for dialogue and demanding the immediate scheduling of elections.
    Trump says he will release tax reform package next week

    Trump says he will release tax reform package next week

    Trump's order directs Mnuchin to determine if the authority could lead to costs for the Treasury, and hence to taxpayers. Neither senior official offered specific details of what the administration's plan might look like.
    1st tropical depression of season forms far from land

    1st tropical depression of season forms far from land

    Only one tropical storm was recorded in April between 1851 and 2015, those records show (compared to 21 in May). The system has migrated from part tropical and part subtropical to a fully tropical system.
  • French intelligence report says Assad forces behind April 4 sarin attack

    The Kurdish-led Syrian Democratic Forces are the U.S.'s main partner in the battle against the Islamic State group in northern Syria.
    The Tennessee kidnapper's sister reveals his reason for abducting a student

    The Tennessee kidnapper's sister reveals his reason for abducting a student

    He is awaiting extradition to Tennessee, where he will be charged with sexual contact with a minor and aggravated kidnapping. The charge carries a minimum 10-year sentence. "It was kind of a roller coaster of emotions for her".
    FDA further restricts pain medication use in kids

    FDA further restricts pain medication use in kids

    The US Food and Drug Administration warned the public on Thursday regarding the use of certain medications containing narcotics. Aside from breathing issues, codeine also causes nausea, vomiting, abdominal pain, constipation, and skin allergies.
  • Egypt's Abdel Fattah el-Sisi visits Saudi Arabia

    Salman fired Minister of Civil Service Khaled Al Araj, who will be investigated by a committee of the royal court. The king also appointed Fahad Bin Turki to replace Lieutenant General Eid al-Shalwi as head of the Saudi army.
    Eyeing 2019, BJP to hold national executive meet in Odisha on Saturday

    Eyeing 2019, BJP to hold national executive meet in Odisha on Saturday

    The BJP organised a motorcycle rally to welcome him. "Now show your strength to serve the people and the down trodden", Shah said. Gadkari said, during the meeting, Muslim women who are facing difficulties on the issue of triple talaq , was also discussed.
    Record Store Day 2017 Celebrates Its 10th Anniversary On Saturday

    Record Store Day 2017 Celebrates Its 10th Anniversary On Saturday

    The BPI said that vinyl, which has hit a 25 year high, now accounts for 15% of physical album turnover. There's something special about the sound of a record, and today's the day you can celebrate it.
  • YI Technology and Google Unveil YI HALO at NAB 2017

    YI Technology and Google Unveil YI HALO at NAB 2017

    And while it tops out at the same 8K resolution as the GoPro Odyssey, the ability to shoot 5.8K at 60 frames per second is unique. The new hardware was announced by Google on April 24, about a week after Facebook unveiled its plans for a pair of VR cameras.
    WS Atkins agrees to takeover by SNC-Lavalin

    WS Atkins agrees to takeover by SNC-Lavalin

    This values Atkins at £2∙1bn and represents a premium of 35% on the closing price of its shares on March 31. SNC's funding will also include an $800 million public bought-deal offering, the company said.
    Moto X (2017) hands-on images leaked: Reveals design, specs and more

    Moto X (2017) hands-on images leaked: Reveals design, specs and more

    Lenovo is prepping up to announce the smartphone very soon, however, no details on the launch date have been revealed as of now. The back of the device features a dual camera setup, but there have been conflicting reports regarding the thereof so far.

CONNECT