At first glance, you could be forgiven that Twitter results were another torrent of terrible news for the social media business.
But in one of the entrance of that it has been overstating its consumer numbers for years and logging its third consecutive quarterly earnings decline, there was an interesting bit of information.
The company said that it may turn its first profit in the end of 2017. That is right, after 11 years and losses of around $2.5 billion, Twitter might be about to turn into a profitable business.
The news sent shares shooting upwards.
The reason for this confidence? Firstly, there was a rise in the amount of users that are monthly by 4 percent year-on-year to 330 million. The daily user number that was valuable increased by 14%.
Advertising sales came in higher. This remains a decrease of, but conquer far more gloomy predictions from Wall Street. Data licensing revenue grew by 22 percent to $87 million.
On the right path
“Twitter have heard from their mistakes in the past quarter, which is revealed in the results presented today,” Yuval Ben-Itzhak, CEO in Socialbakerssaid.
“The introduction of the brand new 280-character tweet limit is currently paying off. This departure from their character limit is a massive step. They have space to get their message over and drive involvement with specific audiences. This demonstrates to marketers that advertising on Twitter is still valuable.”
While the 3 percent a share loss for Q3 isn’t just a great result for the company, it’s much better compared to 11% reduction Wall Street had predicted. In accordance with FactSet, this usually means that the business has beaten expectations for the last three quarters.
“Twitter is always on the right path to regain commitment from marketers. Yet, they need to keep on demonstrating they are still a rewarding investment from innovating and adding new features like the recently successful 280-character tweet trial,” lasted Ben-Itzhak.
“However, why stop in 280? 560 characters would add even more circumstance to Twitter’s algorithms to better comprehend the audience, enhance targeting quality and assist entrepreneurs personalize their message.This will finally reassure marketers the platform can appeal to their audiences and offer ROI.”