Twitter Has Achieved Its First Profit Milestone
Twitter reported its first quarterly earnings on Thursday, a key milestone for the social network that has been lagging behind for years against rapidly growing rivals.
Twitter, based in San Francisco, disclosed report about its earning of fourth quarter which is $ 91 million, the first positive net income since it went public in 2013.
Revenues increased two percent compared to the previous year to a better than expected amount of $ 732 million.
Twitter has 330 million active users on monthly bases which was same as the previous year. However it was four percent more than the previous year.
While Twitter has created a strong central base of journalists, celebrities and politicians, it has not achieved the wider attraction of Facebook and other social media platforms, which has impaired its ability to generate advertising revenue.
Twitter shares rose 26 percent to $ 33.86 in pre-market trading thanks to encouraging news. Shares this month jumped above the 2013 offer price of $ 26 for the first time since the end of 2015.
Profitability is an important achievement for Twitter, which has lost money constantly since its public offering, which sparked speculation about whether it needed to sell to continue operating.
Jack Dorsey, CEO welcomed by saying “a strong finish to the year,” he further said, “I’m proud of the steady progress we made in 2017, and confident in our path ahead.”
The network has intensified its efforts to increase its user base and participation, adding video transmission associations, doubling the character limit in tweets to 280 and facilitating the creation of “tweetstorms” by joining the messages.
Dorsey said that “it minimizes some of the complexities” and “more importantly it is enabling people to be more expressive about what’s on their minds.”