Twitter stock turns negative: keeps itself in black

TwitterUntil recently, the message service Twitter has been in the black for the second quarter in a row.

Finally, the reconstruction work of co-founder Jack Dorsey, who returned to the Twitter top two and a half years ago, finally took hold .

Twitter was also able to record a noticeable increase in the number of users. At least once a month, 336 million users were active – in the previous three months, the number had stagnated at 330 million.

This growth was mainly outside the US with a jump from 262 to 267 million users. In the home market, however, Twitter is stuck for over a year just below the mark of 70 million users. The number of daily active users increased worldwide by ten percent – but Twitter does not traditionally put them.

Twitter increased first-quarter revenue year over year by a good fifth to $ 665 million. International business will soon bring in more than half of the revenue. In the past quarter, international sales shot up 53 percent to $ 318 million.

The bottom line was a profit of $ 61 million left, after a deficit of about 61.6 million a year earlier. In the final quarter of 2017, Twitter had hit the black for the first time with a profit of 91 million dollars. Just since the first available figures in 2010, losses in recent years have added up to nearly $ 2.6 billion. Twitter was launched in 2006.

Investors were also pleased with the figures in a first reaction: The Twitter share puts in the first few minutes of trading on the NYSE about three percent, but slips in the course of five percent down.

Dorsey wants to align Twitter more on current events including live videos. “Our core task is to inform people,” he affirmed on Wednesday. The upcoming World Cup sees Dorsey as an opportunity to attract users with information about the events.

Twitter does not feel any negative impact from the current data scandal on Facebook , Dorsey said in a conference call with analysts. Advertising continued to make the lion’s share of the Twitter business $ 575 million last quarter. In the future, video advertising should also play a bigger role.

It’s still too early to estimate the financial impact of the EU Data Protection Regulation on business, Twitter said. The new rules, which set stricter requirements for security and transparency, will be in effect from 25 May.

Also in connection with measures against extremist content on the platform, the number of employees will increase this year by 10 to 15 percent, it said. At the end of 2017, Twitter had around 3300 employees.

SAN FRANCISCO (awp international)

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