Twitter Moves Into the Black With $91M Profit


Twitter Moves Into the Black With $91M Profit

"I'm proud of the steady progress we made in 2017, and confident in our path ahead".

The news pushed Twitter shares up 12% to a closing price of $30.18 on Thursday - their highest level in more than two years - after peakingduring the day at $35.

In its 12 years of history, it is the very first time when Twitter Inc.

But the San Francisco tech company continues to face a number of challenges, including a string of executive departures.

The company has continuously been pushing to diversify its sales beyond advertising. The company also said its data and enterprise solutions gained a lot of traction, thanks to its new tiered product and channel strategy which introduced a "significant number" of new enterprise deals in the fourth quarter. "While we can see this as positive for sentiment and investor confidence, it's hardly a game-changer for Twitter".

Dorsey told analysts on a conference call that he was not planning a search to replace Anthony Noto, who is leaving as chief operating officer to become CEO of online lender Social Finance Inc and whose duties have been absorbed by others.

Analysts, however, had different concerns. But Dorsey said at a conference late a year ago that it's "not about the amount of time I spend at one thing but how I spend the time and what we're focused on". The Company's products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends.

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The bank saw its net bad loans ratio spiking to 5.61 per cent of advances, from 4.24 per cent during the third quarter of 2017-18. The numbers were crimped by higher credit cost as well which for the first nine months has shot up to 3.18 per cent.

Despite making a profit, there's a grey cloud over the company.

The increase in tweet length to 280 characters is believed to have increased the amount of time individual users spend on the platform, but has not encouraged previous users to return or become more active.

Dorsey said that the increased limit has encouraged people to write more often on Twitter, though not necessarily with significantly longer messages. A change the company says is leading to increased engagement, less complexity for users and fewer "abandoned tweets".

Monthly active users grew more slowly, up 4% from a year earlier to 330 million. Twitter attributed its lack of user growth to Safari's third-party app integration changes, seasonality and its efforts to crack down on fake accounts and spam. Twitter stated that they lost approximately two million monthly users as a result of the change, one million of these users were US based.

The good news for the company, which went public in 2013, came as its monthly active users in the United States dropped by a million from 69 million in the third quarter. The company is still struggling to bring people onboard, posting 300 million monthly active users for the second quarter in a row. This is compared to the $167 million loss in the fourth quarter of 2016. The only reason overall user growth has continued is because it remains slow but steady internationally.

Segal noted that honing these abilities would also work to Twitter's advantage when courting new users.

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