by Rob Lever
Agence France Presse
WASHINGTON, United States (AFP) — Twitter shares surged Wednesday after its quarterly replace confirmed bettering development in user numbers, offsetting issues over a decline in income and one other web loss for the social community.
The first quarter outcomes got here in higher than most forecasts for Twitter, which has struggled to maintain tempo in the fast-moving world of social media.
The carefully watched metric of month-to-month energetic customers grew 9 p.c from the identical interval a yr in the past to 328 million. Twitter mentioned every day energetic utilization rose 14 p.c with out providing a selected determine.
Net loss narrowed to $62 million from $80 million a yr earlier for Twitter, which has by no means reported a revenue.
Revenues in the meantime fell eight p.c to $548 million — which might usually be troubling for a social media group, however the determine was not as unhealthy as feared.
“This past quarter has given us a lot of confidence in our focus and execution and excitement for our path ahead,” Twitter chief government Jack Dorsey advised a convention name.
Dorsey mentioned Twitter stays “focused on making progress” towards attaining profitability, however provided no particular purpose.
“We’re delivering on our goal to build a service that people love to use, every day, and we’re encouraged by the audience growth momentum we saw in the first quarter,” he mentioned in the earnings launch.
Twitter shares rallied 7.eight p.c to shut at $15.82, the best stage since February, suggesting an easing of fears concerning the path ahead for the micro-blogging service.
Jan Dawson of Jackdaw Research mentioned in a tweet: “Much better results today from Twitter, across several categories. MAU (monthly active user) growth best for two years (though still historically low).”
Dawson added in a weblog post that Twitter nonetheless faces challenges from income declines however that “the improved user growth and some signs of increased advertiser investment are more reassuring for long-term growth.”
Brian Wieser of Pivotal Research mentioned Twitter’s outcomes had been “better than expected, with generally positive user trends” however that it nonetheless faces a troublesome street forward.
“Twitter may need to raise additional cash to fund its business given the degree to which it needs to continue spending to support an optimal business plan,” Wieser mentioned in a analysis observe.
“Investor sentiment around Twitter will undoubtedly swing wildly around recent momentum in any given direction, making the stock itself riskier than the company in many ways.”
Twitter has been looking for to broaden its enchantment past its core user base of celebrities, politicians and journalists, ramping up efforts in video and reside sports activities, notably.
But the corporate has did not reside as much as early expectations, whereas Facebook and different social networks have been rising at a quicker tempo. As a reminder of Twitter’s woes, Facebook-owned Instagram on Wednesday reported it has 700 million customers, whereas the main social community itself has greater than 1.eight billion.
It stays to be seen if Twitter will reap advantages from the prolific tweeting of President Donald Trump, who makes use of the community to attach together with his base, and infrequently to make coverage bulletins.
Twitter chief working officer Anthony Noto advised analysts on the convention name there may be “some evidence that we benefitted from our new and resurrected users” who comply with politics.
He urged the pattern was being pushed each by political gamers’ rising use of the platform, and the very fact main information organizations are more and more migrating onto Twitter.
“As you know, we believe Twitter is the best at showing you what’s happening in the world and what’s being talked about,” he mentioned.
“Having the political leaders of the world as well as news agencies participating in driving that, is an important element to reinforcing what we’re the best at.”
Advertising continued to make up the lion’s share of Twitter income — however advert revenues had been down 11 p.c from a yr in the past to $474 million.
A tweet from Twitter’s investor relations arm famous that “we continue to expect revenue growth to meaningfully lag audience growth in 2017.”
© Agence France-Presse