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Home / Technology / Twitter turns estimates of revenue, but monthly usage is falling

Twitter turns estimates of revenue, but monthly usage is falling



SAN FRANCISCO (Reuters) – Twitter Inc posted record earnings on Friday with revenues from other quarters that beat financial analysts' estimates and that criminal offenders this year had paid themselves if their monthly usage had fallen.

PHILOTTEE: A man reads tweets on the phone in front of a certain Twitter logo in Bordeaux, South of France, March 1

0, 2016. REUTERS / Regis Duvignau / Illustration / Filfotography / Filfoto

Twitter, as major rival Facebook Inc, has been under pressure from regulators in several countries to eradicate hate speech, violent content and misinformation, better protect user data and increase the transparency of political advertisements.

The social media company increased the move and suspension of accounts in recent months, saying that this was a reason why the number of monthly users dropped by 1 million to 335 million in the second quarter of the previous three months.

The US accounted for most of the decline.

Financial analysts had expected a gain of 1 million users and the results could cure concerns that Twitter lacks a clear strategy to increase usage and revenue together.

Chief Executive Jack Dorsey said in a statement that daily users grew 11 percent compared to a year ago saying that addressing "problem behavior" was making the service a daily tool.

The company did not reveal the number of daily users.

Sales of $ 711 million, mainly from advertising and up 24 percent from last year, exceeded the average $ 696 million estimate of analyst research gathered by Thomson Reuters.

Twitter said it took advantage of two weeks in the World Cup in the second quarter, with ads related to the football tournament that generated $ 30 million in revenue.

The result was $ 100 million, with an increase of $ 42 million due to a tax change. It marked Twitter's third quarter in a row and the third three month period without loss.

Adjusted earnings per share were in line with the average estimate of Thomson Reuters data of 17 cents per share, but it was not immediately known if the figures were comparable.

Twitter shares have rallied this year on expectations that make the service a friendlier place to interact with other users, and it will also make it more attractive to advertisers.

Shares closed Thursday trading with more than 10 times expected revenue over the next 12 months, according to Thomson Reuters data.

Facebook and Google's parents Alfabet Inc, both of whom have begun to experience more gradual revenue growth, are trading eight and six times expected earnings respectively.

Facebook is still good over Twitter by making money for money and generates $ 5.89 on average on average per user in the second quarter compared to $ 1.79 for Twitter.

Some analysts say Twitter is better now to keep users, but the question is enough to lure new ones.

Twitter has said increased video programming, including news shows and live sports, and investing in technology that automatically exceeds interesting content with limited user intervention should make the service appealing to first-time travelers.

Macquarie Research analysts said in a report this month that they had not seen evidence that product improvements were "driving significant new user growth."

The latest results carry it out. Twitter said that it lost some users due to the introduction of the General Data Protection Regulation in Europe in May, but it did not notice any revenue impact. Facebook has said it expects to take a moderate hit in the coming quarter due to the new rules.

Twitter also saw usage fall after saying that it would not subsidize users who had access to the application via text messages without paying a message fee to wireless operators.

The company increased its investment guidance for the year to between $ 450 million and $ 500 million from $ 375 million to $ 450 million, as it extends and upgrades the computer's infrastructure that is the basis of the service.

The costs associated with licensing of video and automation of user data increased general expenses 10 percent to 631 million dollars in the second quarter compared to one year ago.

Reporting by Paresh Dave; Editing by Peter Henderson and Edmund Blair

Our Standards: Thomson Reuters Trust Principles.

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