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

Spicer Doubles Down on Obama Wiretap Claim
Spicer Doubles Down on Obama Wiretap Claim
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27 April, 2017

The microblogging social network said its tally of monthly active users (MAU) has increased from 319 million in Q4 to 328 million in Q1, representing growth of around six percent.

Twitter posted GAAP losses of 9 cents per share or $62 million, compared to last year's loss of 12 cents per share or $80 million.

Twitter Inc. soared past first-quarter user expectations, adding 9 million users in the quarter, beating revenue expectations along the way.

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

The shares surged as much as 14 per cent in premarket trading, rising to a high of US$16.65.

Twitter recently released its quarterly report and contrary to expectations from most financial pundits, the company has actually managed to register an increase in various aspects.

At the same time, the Twitter boss said the company continued to face "revenue headwinds".

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Live streaming was also strong, with live video reaching 45 million unique users.

It's how he wishes his "many enemies" a happy new year, how he bypasses the "unfair" media to communicate directly with the American people and - perhaps - a big part of how he won the White House.

He said on Wednesday: "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".

But this quarter, analysts are predicting that even Twitter's revenue could take a hit. The company also introduced an update that makes it easier for users to follow conversations and replies in late March.

For the first quarter, Twitter reported revenue of $548 million - down 8% year-over-year.

Twitter says that Trump is not the only reason Twitter growth improved last quarter.

Twitter said it expects overall revenue growth to "meaningfully lag" audience growth throughout 2017. That's good news for Twitter, as more users means more advertising revenue, but they still trail Facebook and Instagram - by a lot. Twitter said it is looking for adjusted earnings of between $95 million and $115 million, but the consensus estimate from Wall Street is $141 million.


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