Twitter suffered the first drop in revenue from year to year, but exceeded all Wall Street expectations and its stock shot up more than 10% before the opening.
The company reported revenues of 548 million dollars and a profit of 0.11 dollars per share, well above analysts’ expectations of 512 million dollars and 0.01 dollars respectively. Even so, the most important thing for Twitter is the growth of users that it has achieved after a long period of decline: 9 million more monthly active users and an increase of 14% year-on-year in users who enter their platform daily.
The letter to shareholders stresses that it is the fourth quarter of growth, but has not given the number of active users per day. The results are a relief for the company, in constant judgment for its disappointing growth rates, and for Jack Dorsey, his busy CEO, who has made numerous changes since his arrival without the positive impact he expected.
They are the latest changes in the chronology , now ordered by artificial intelligence algorithms , and the new way of showing conversations the protagonists of growth, according to Twitter. Curiously, these changes unleashed the anger of its most loyal users , accustomed since 2006 to a chronological order of the tweets and the “@” in the mentions.
Twitter, indicated by its existing problem of abuse in its social network, has taken several measures to create a “safer place”. From updates to avoid the creation of abusive accounts to the elimination of conversation notifications of accounts that users had previously blocked. “As a result of our measures, we are detecting fewer reports of abusive behavior,” the company says.
The live video and the original programming is another focus of Twitter, which is very focused on promoting the content in real time and the conversation about what happens at the moment. It broadcast more than 800 hours of video content thanks to the partnership with various media, its sports programs or the coverage made of the Grammys. More than 450 shows that attracted more than 45 million unique viewers in the quarter; 31% more than in the previous quarter. The problem is that rights are expensive and many other companies are interested. A few weeks ago, Amazon took over the rights to the program they broadcast thanks to collaboration with the NFL.
Ultimately, Twitter wants to become a television channel that broadcasts exclusive content 24 hours a day, seven days a week . For this quarter, he announces collaboration with IGN to exclusively broadcast a special on E3, the largest video game fair, and with Billboard to broadcast the #REVOLVE festival.
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