Twitter rallies as growth for first quarter surpasses expectations
- Author: Ronnie Bowen Apr 27, 2017,
Apr 27, 2017, 2:20
In the last quarter, Twitter's daily active user base grew by 11 percent, as well as its losses shrunk by about 23 percent to just $62 million.
The microblogging service - which is listed on the NYSE - reported a 6% leap in average monthly active users, to 328 million, in the first quarter of the year compared to a year ago. Net loss narrowed to $61.6 million (€56.9m), or 9 cent per share, in the first quarter ended March 31st, from $79.7 million (€73.2m), or 12 cent per share, a year earlier.
Twitter shares were up 11 percent at $16.25 in premarket trade on Tuesday.
On a quarterly basis, Twitter added 9 million monthly users.
At the same time, the Twitter boss said the company continued to face "revenue headwinds". In addition, the company tries to attract more users by streaming live video from sports, entertainment and news partners. Decline in the number of new users would also directly impact the company's revenue from ads - the easiest way to generate revenue for a social media company.
Twitter has surprised analysts in its latest quarterly update, posting better-than-expected figures for both user growth and revenue.
Moto X (2017) hands-on images leaked: Reveals design, specs and more
You can see an oblong-shaped physical Home button in the front and also fingerprint sensor located below the display. There is set to be a 13-megapixel snapper at the back, but there's now no details on the selfie camera.
(TWTR) soared 13% in premarket trade Wednesday after the social media company beat first-quarter earnings expectations.
But Twitter says it was a result of changes it has made to the way it displays a user's timeline, such as showing tweets a user may have missed, instead of displaying them chronologically. For example, Twitter's revenues fell on a year-over-year basis for the first time, dropping by 8% to $548 million. Stifel analyst Scott Devitt said that while the National Football League deal likely contributed about 1 percent of Twitter's 2016 revenue, it "seemed to be an important pillar of Twitter's Live strategy".
Mr Dorsey said the increase in users was in part because the service had been streamlined to make it a better experience for users, including measures to reduce abusive content.
A tweet from Twitter's investor relations arm noted that "we continue to expect revenue growth to meaningfully lag audience growth in 2017".
Twitter's stock is down 10 percent in the past year, and down 4 percent over the past quarter. Snap recently had completed its initial public offering and will report earnings in May.