Google and Alphabet CEO Sundar Pichai’s trip to Congress to answer questions from the House Judiciary Subcommittee on its digital advertising dominance is indicative…
Don’t look now, but Twitter just made money.
In its 12 year existence the microblogging social network had yet to record a green revenue figure, but this all changed drastically in the company’s latest financial report.
Its Q4 2017 highlights suggests that it made a profit of US$91-million, this coming after a loss of US$167-million in the same quarter last year.
The gains stem from “strong engagement growth, improved revenue features, improved ROI, and better sales execution,” it told investors in a report.
But that’s fluff really. Cost-cutting was the main driver of profit here. Expenses for “General and administrative, research and development, sales and marketing and cost of revenue” decreased by US$240-million in Q4 2017 over Q4 2016.
Full-year growth also shows a degree of stagnation.
Overall, revenue figures for 2017 topped US$2.443-billion dollars, down from US$2.53-billion in the previous year. Additionally, its share of revenue from advertising shrunk too, with “data licensing and other revenue” gaining around US$50-million.
Notably, daily active users have increase by 12% year-over-year too, but this hides a deeper issue: user growth.
“Average US MAUs [monthly average users] were 68-million for Q4, an increase of 2% year-over-year and a decrease of 1-million quarter-over-quarter, reflecting the impact of the change to Safari’s third-party app integration, as well as seasonality and increased information quality efforts,” the company wrote.
“Average international MAUs were 262-million for Q4, an increase of 4% year-over-year and compared to 261-million in the previous quarter.”
With that said, Twitter’s overall monthly average user numbers remained at 330-million.