Twitter Actually Made a Profit For the First Time


The company had posted a loss in every quarter since it went public in 2013.

First, things are definitely looking up for Twitter's business.

The company reported a profit of $91 million in the last three months of 2017, compared with a loss of $167 million during the same period in 2016.

"With an increase in both total revenue and advertising revenue in Q4, Twitter is definitely on the right path to regain commitment from marketers".

The company's daily active users also rose 12 percent from a year ago. The original version of this news story can be accessed at

Twitter had said earlier the breakthrough was possible as it slashed expenses.

There are millions of fake accounts tweeting, retweeting and liking numerous most high-profile accounts on Twitter. "This severely limits its revenue potential, as Facebook and Google will continue to capture the bulk of the growth in spending for digital advertising".

Twitter said revenue was helped by better ad targeting that raised clickthrough rates, or the ratio of users who click on a specific ad to the number that view it, and higher video ad sales. But that may change. Northern Trust Corp grew its holdings in shares of Twitter by 78.3% in the second quarter.

MAU was also impacted by increased information quality efforts, which are the company's overall efforts to reduce malicious activity on the service, inclusive of spam, malicious automation, and fake accounts.

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Twitter had never had a profitable quarter until now.

Twitter reported its results for the fourth quarter, showing stronger revenues and a positive profit figure. Its user base stood at 330 million, which is the same as Q3.

The company attributes the U.S. user loss to "seasonality" and a change to the Safari web browser impacting its third-party app intergrations. "One of the things that we don't do well today is match [users] with [their] interests very quickly", he said, adding that Twitter was experimenting with how to make this an integral part of the on-boarding process. The active pool of users has gone down. Adjusted EBITDA rose to Dollars 308 million from 215 million.

The one plus side for Twitter is the $4.4 billion in reserve funds that the company has available.

Can Twitter get more out of it?

If Twitter doesn't tackle these issues soon, users will likely continue to flee. In addition, Twitter's focus on improving its live video feature is expected to drive higher user engagement.

"Giving you the percentage growth for DAU [daily active users] gives you a sense for our trajectory in driving usage of Twitter as a daily utility", Segal said.

"We can look at the most recent period's results as marking an important milestone in the company's turnaround, perhaps bringing the future forward by a quarter", he wrote.