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First profit ever — Twitter achieves milestone

09 February 2018

It was almost 12 years coming, but Twitter has finally turned a profit for the first time in its history.

In addition to Snap and Twitter, Cordwell noted that Amazon's ad sales business appears to be growing fast too.

And that means fewer advertising opportunities.

Both Twitter and Facebook have stepped up efforts to crack down on "bots" and other efforts to manipulate their platforms, to deflect criticism about the spread of misinformation. Should there be problems in the coming years, there is enough money around to keep the company fully operational while issues are resolved.

Chief financial officer Ned Segal said Chinese exporters were strong advertisers overseas.

More than a decade after the first tweet was tweeted, Twitter has finally made its first quarterly profit. But it's been cutting costs and focusing on new revenue streams, such as live video. In the fourth quarter, Twitter lost 1 million monthly active users in the United States, reducing the total to 68 million. Its net income - a first - was $91 million, or 12 cents per share. The shares of Twitter went up to 12 percent close to $30.18 and attained their highest level in the span of a year.

The quarter "was a breath of fresh air for investors that have patiently awaited for this turnaround story to manifest after years of pain", Daniel Ives, head of technology research at GBH Insights, told Engadget.

San Francisco-based Twitter said usage was hurt by seasonal weakness and a change that Apple Inc made to its Safari web browser that reduced the tally of users by 2 million.

Overall, Twitter climbed to 330 million monthly active users, up 4 percent annually, but still below analysts' expectations. In November, the company published a clearer version of such policies. But enforcing them will be a bigger hurdle. Going forward, Twitter has also promised to permanently suspend accounts identified as the source of tweets featuring nonconsensual nudity. While the company's difficulties adding users is a concern, monetization across both the USA and worldwide market has helped the company to report growth in profit. Twitter says only about 5 percent of its accounts are run by bots. The key here is that the amount of users actively spending time on the platform has grown dramatically over the last 18 months or so. But the Times referenced a report saying it could be as high as 15 percent. Analysts expected 3 million more monthly active users added during fourth quarter to get to 333 million.

"We're seeing less abandonment of tweets, but we're also seeing a lot more engagement", Dorsey said.

Last month, Twitter COO Anthony Noto said he was leaving the company. The company's market cap is $13.32 billion. The company has gone through multiple rounds of layoffs since cofounder Jack Dorsey returned as CEO in 2015. Dorsey splits his time between Twitter and his other company, digital payments firm Square. They set a "buy" rating and a $26.00 price objective on the stock.

Twitter declined to comment. "So, we do believe that it is minimising some of the complexities and some of the confusion around Twitter, in general, but more importantly it's enabling people to be a lot more expressive and share what's on their minds and that little bit of room extra has really proven to help".

First profit ever — Twitter achieves milestone