Twitter posts first profit

Sunday, 11 Feb, 2018

Twitter reported its first-ever quarterly profit on Thursday, delivering a boost to shares of the social network, which had been lagging for years behind fast-growing rivals.

Twitter shares surged almost 15 percent in pre-market trade on the news.

Despite Twitter being very popular, investors have always been confounded by its inability to turn a profit, even though it has a ubiquitous presence in the media and is widely used by politicians, celebrities, sports stars, and just about everyone who looks to send 280-character messages. Twitter's GAAP net loss narrowed to $108 million and a net margin of 4% in 2017.

The company has found success with video and other changes, deepening the experiences on offer, James Erkine, director at marketing firm The Social Circle, told the BBC.

"Hopefully now they've made a profit once, they should be able to do it next quarter and carry on doing it".

In October past year, Twitter had suggested a profit was likely as it sought to cut costs, but both profit and revenue outstripped investors' expectations.

Now that is great news for the company but there is still some bad news to report-the total number of users remained flat.

""We're pleased with our performance in 2017 and our return to revenue growth in the fourth quarter", Ned Segal, Twitter's CFO said in a press release". Twitter revealed it had 330 million monthly active users in the final quarter of previous year. Monthly active users in the United States were down to 68 million from 69 million in the third quarter. That basically means Twitter can't grow its user base, but they also chalk up that number to a recent purge of fake accounts and Nazi trolls.

The firm has faced controversy over use of the platform during political events, including Brexit and the 2016 presidential election in America.