Trump tweets don't help: 1st Twitter revenue drop since IPO
- Author: Wendy Palmer Apr 27, 2017,
Apr 27, 2017, 2:18
Twitter said Wednesday it had an average of 328 million monthly users during the first quarter, a 3 per cent increase from 319 million during the previous quarter.
Net loss narrowed to $61.6m, or nine cents per share, in the first quarter ended 31 March, from $79.7m, or 12 cents per share, a year earlier.
Twitter Inc reported a 6% increase in monthly active users, beating analysts' expectations, after several quarters of stagnating growth.
Noto said Twitter wants to air live video to users 24 hours a day, seven days a week via its desktop and app offerings. This was enough to send TWTR stock up over 10% in pre-market trading.
Twitter's numbers could be even lower, according to study released last month by the University of Southern California and Indiana University, which found that as many as 48 million Twitter accounts are fake.
"We continue to expect revenue growth to meaningfully lag audience growth in 2017", the company wrote in a letter to shareholders Wednesday.
Wall Street's estimates regarding Twitter's business could be wrong as well, but a decline in business is, of course, bad for the company as it is seeing a plateau when it comes to number of new users.
The struggling tech firm saw its revenue decline for the first time as a public company, though, a sign that it still has more work to do to attract advertising dollars.
Twitter also managed to report earnings (excluding certain expenses) that were much better than expected, making 11 cents a share instead of the one cent most analysts projected. Twitter saw a larger revenue decrease in the USA, with a 13% year-over-year decline.
Twitter's Q1 revenue totaled $548 million, down 8% year-over-year.
Trump's tweets generate headlines on a daily - if not hourly - basis, ensuring Twitter is constantly in the news cycle.
The challenge now seems to be continuing to convince advertisers that Twitter can help them leverage that attention with their advertising products. Many analysts expected Twitter to add about 2 million monthly active users during the quarter, according to WSJ. "We believe, however, that executing on our plan and growing our audience should result in positive revenue growth over the long term".