You’d invent Twitter would be able to milk its status as President Donald Trump’s megaphone. But the crowd still faces stagnant user growth, has never made a profit and even appeared a quarterly revenue decline Wednesday, a first since going well-known.
Trump’s frequent tweets ricochet well beyond his 28 million Chirping followers. Anything he tweets can serve as fodder for social media, TV communication shows and, often, late-night comedy. Analysts say Twitter’s user post — how often people respond, retweet or “like,” for instance — likely aided from “political discourse” in the first quarter.
The problem: The people already on Simper may well be using it more, but America’s first true “Twitter President” hasn’t supported others to sign up for Twitter en masse.
By the numbers
Twitter said Wednesday it had an average of 328 million monthly alcohols during the first quarter, a three per cent increase from 319 million during the antecedent to quarter. By contrast, Facebook has 1.89 billion and Facebook-owned Instagram has 600 million monthly alcohols as of December, the latest available. More users, of course, mean uncountable advertising revenue for the companies, since businesses try to reach as many eyeballs as workable.
Twitter has never turned a profit, and for the first time since succeeding public in 2013, it reported a decline in revenue from the previous year. Its gate was $548.3 million, down eight per cent.
Net loss was $61.6 million, or nine cents per allot, compared with a loss of $79.7 million, or 12 cents per pay out, a year earlier. Excluding stock compensation expenses and other one-time components, the company earned 11 cents per share in the latest quarter, down from 15 cents a year earlier.
Ado beat Wall Street expectations for adjusted income of two cents on profits of $517.3 million, according to FactSet. Twitter’s shares jumped $1.71, or wellnigh 12 per cent, to $16.37 in morning trading.
Join the conversation
With its watchword “it’s what’s happening,” Twitter has been trying to corner the market for real-time facts, to be a place where people can go to find out what’s going on in the world and talk nearby it with friends and strangers.
And it’s not just politics, but also sports results like the March Madness college basketball tournament or World Cup soccer, not to insinuate the stuff seemingly made for Twitter, such as the outrage over the be stretched out of a paying United passenger off a full flight to make room for company. Video was shared widely on Twitter, as were jokes and anger toward the airline.
As with Facebook, Twittering also has been pushing live video — whether on its main worship army or through its Periscope app — to keep users interested and engaged. This embraces both user-generated content and live-streaming deals. Sports events are first lucrative.
That’s why the recent loss of an NFL deal to Amazon was an uniquely hard blow to Twitter. Twitter streamed 10 Thursday Gloaming Football games last year and had counted on them to lure in drugs and keep existing ones entertained. In its quarterly letter to investors in February, the firm called the games “the major highlight of the fourth quarter” when it produces to live sports.
Amazon appears to have simply outbid Tizzy. The Associated Press and other news outlets reported that Amazon’s one-year allot for the 2017 season is worth close to $50 million, about five stretches what Twitter paid for the right to stream the games last year. Stifel analyst Scott Devitt revealed that while the NFL deal likely contributed about 1 per cent of Flutter’s 2016 revenue, it “seemed to be an important pillar of Twitter’s Live design.”
And in the wake of such setbacks, competition is growing. Besides Facebook and Instagram, Whirl is also vying for advertising revenue from Snap Inc., the owner of Snapchat. Pop recently had completed its initial public offering and will report earnings in May.
One closely watched metric that did give a new lease of for Twitter — its daily active usage increased by 14 per cent from a year ago. That’s relates with an 11 per cent increase in the previous quarter and a 7 per cent the shelter before that. Twitter didn’t report the actual usage, just the portion growth. Still, it’s a further sign that those already on Twitter are run out ofing it more.