Twitter may be having its best day ever, or at the least in quite a while.
Just about everybody but especially Wall Street( aka Twitter’s worst adversary) expected to see slow customer growth and a downturn on Twitter’s revenue.
And yet, the unexpected happened. Twitter … had a good one-quarter ?!
The highlight is the return of user growth. Twitter added 9 million monthly active users over the one-quarter. That’s 7 million more than expected. The site broke out its growth in the United States, emphasizing that it added 3 million users in its home country.
Even the bad news wasn’t that bad. For the first time since going public in 2013, Twitter’s quarterly revenue waned. Yes, that’s not good, but analysts( and myself) were expecting a really, really bad day for Twitter. We were expecting to be disappointed, per usual.
And yet, Twitter surprised.
Growth contd to be broad-spectrum based: DAU growth acceld in 7 of top 10 global mkts, w/ particular strength in US, which is something we also added 3M MAU seq
TwitterIR (@ TwitterIR) April 26, 2017
Twitter reported $548 million in revenue over the last three months compared to the $511.9 million that was expected by Wall Street. They thump anticipations by more than $36 million.
Beyond fiscals and user growth, Twitter reported that it’s solving one of its major troubles: abuse on the platform.
According to Twitter, they are seeing “less abuse reported across the service.” That statistic goes even as Twitter increases the number of reporting tools and their effectiveness. Twitter CEO Jack Dorsey humbly acknowledged he’s far away from done.
“There’s a lot more to do but we’re on the right path, ” Dorsey told investors on a public earnings bellow Wednesday.
Wall Street is happy. Twitter’s stock, which has fallen to a pitiful price over the last two years, was up by more than 10 percent in pre-market trading. Twitter, for once, is soaring.
It’s unclear where exactly user growth is coming, but Chief Financial Officer and Chief Operating Officer Anthony Noto pointed to several of their priority areas such as news and political accounts. “It’s what we’re best at, ” he said.
Dorsey also pointed to the changes Twitter has introduced into the timeline, such as breakout sections that aren’t about chronological order but instead about relevance. For example, Twitter now has a section for recommended videos within the timeline.
Revenue is down for Twitter, but now that user growth and other components seem to be in order, Twitter is eventually prioritizing that again. Twitter is apparently considering more a chance for revenue, including ads where tweets are syndicated( like in this article) and within Twitter Moments.
Twitter is also adding more data partners and get accredited so that advertisers can have more religions in that their money is well spent on the platform.
“Our goal is to be the gold standard” for transparency to advertisers, Noto said.
One of Wall Street’s main criticisms for Twitter during its period of strife has been in leadership. For example, Dorsey, a cofounder of Twitter, has two CEO points. In addition to running the ship at Twitter, he results payment company Square.
While the street has called for Dorsey to choose between his two babes, Dorsey has remain committed to both. How has he survived? Prioritization, he said Wednesday, for himself and for his companies.
“The biggest focus for me is making sure we have a really strong prioritization, and we understand what matters most, ” Dorsey said. “Our core use case[ at Twitter] is depicting “the worlds” what’s happening … We’re operating at a greater efficiency so we can ship faster.”
“We’re focused on only what matters.” – @jack
Indeed, Twitter has shut down many initiatives over the last year in an effort to cut down on expenditures, increase engagement and move toward profitability. It shut down the beloved app Vine last October, for example.
“We’re focused on only what matters. We’re moving anything that might have been distracting, ” Dorsey said. “I get more and more confident every single day.”
An unexpected, but much appreciated topic from the bellow centres on bots. Since Twitter is adding an impressive amount of users now, let’s consider how many of these accounts are real.
Twitter has had a long-time problem with bots. But, according to Twitter, it’s minimal. Dorsey quoth a statistic, first released in 2014, that simply 5 percent of Twitter accounts are spam related. But they have the means to closed these down, according to Dorsey.
Perhaps they will. Dorsey, for once, seems confident. Next week, Twitter will host its first-ever NewFront presentation, where digital media corporations pitch upcoming series to advertisers, who can then choose to sponsor the content.
In the meantime, Dorsey will be listening.
“Have a great day. We’ll see you on Twitter, ” Dorsey said to end the call.