Twit­ter sees lift in user base, rev­enues at $1bn

Muscat Daily - - BUSINESS -

Wash­ing­ton, US – Twit­ter de­liv­ered a stronger-than-ex­pected up­date for the fourth quar­ter show­ing an ex­panded user base and grow­ing ad rev­enue, spark­ing a rally in shares.

Net profit fell by half to US$119mn but rev­enue rose 11 per cent to top US$1bn for the first time.

Twit­ter’s mea­sure of its user base grew 21 per cent from a year ago to 152mn, which the com­pany said re­flected im­prove­ments to the short messaging plat­form.

Chief ex­ec­u­tive Jack Dorsey said the re­sults capped ‘a great year for Twit­ter’ and re­flected ‘our work to in­crease rel­e­vance and ease of use’.

“En­ter­ing 2020, we are build­ing on our mo­men­tum - learn­ing faster, pri­ori­tis­ing bet­ter, ship­ping more and hir­ing re­mark­able tal­ent,” he said.

Shares in Twit­ter surged more than 8 per cent in pre-mar­ket trade fol­low­ing the up­date.

Twit­ter has been strug­gling to keep pace with big­ger so­cial net­works like Face­book and In­sta­gram and has sought to make the plat­form eas­ier to use while fil­ter­ing out abuse and ma­nip­u­la­tion.

Last year, the San Fran­cisco tech firm said ‘bugs’ in its soft­ware used to de­liver tar­geted ads had dragged down rev­enue.

It has changed the way it mea­sures its user base, now re­port­ing only ‘mon­eti­s­able daily ac­tive users’, which rose sharply in the quar­ter.

That fig­ure in­cluded 31mn in the United States and 121mn in­ter­na­tion­ally, with both cat­e­gories gain­ing.

“Twit­ter’s strong per­for­mance in rev­enue shows ad­ver­tis­ers are con­fi­dent in the plat­form’s reach de­spite some of the prod­uct is­sues ear­lier in the year,” said eMar­keter an­a­lyst Naz­mul Is­lam.

“A rea­son for the con­fi­dence is prob­a­bly con­tin­ued growth of mon­eti­s­able daily ac­tive users, which spiked up again in the fourth quar­ter.”

Is­lam added that Twit­ter’s moves to ban po­lit­i­cal ads and curb the spread of ma­nip­u­lated me­dia such as ‘deep­fake’ videos, ‘should res­onate pos­i­tively with users and con­tinue the growth in en­gage­ment in the next quar­ter’.

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.