Twitter is on a roll – financially. Following the announcement that it was profitable in Q4 2017 for the first time in four years, the company has just released surprisingly positive earnings for Q1 2018. The microblogging site also predicted that it would remain profitable for the rest of the year.
First quarter profits were $61 million, down slightly from $91 million during the previous quarter.
Aaron Goldman, CMO, 4C Insights commented:
“Twitter’s Q1 earnings remain strong following a solid Q4 performance in which the business turned a profit for the very first time. Reflecting on the tent pole events in Q1 that promote engagement across TV and Twitter – the Winter Games, the Super Bowl, Oscars, Grammys and Brits – it’s not surprising that the company’s performance was so positive.”
“We saw steady growth for brands using 4C to manage their Twitter campaigns in Q1 with spend going up and cost per click going down, which advertisers are getting savvier with their optimisations. We expect the strong results to continue as Twitter innovates to deliver an experience that keeps audiences engaged with updates like threading tweets and new offerings like Video Website Cards.”
However, that’s not all the good news. In addition, Twitter added six million new monthly users during Q1 2018. That’s twice as many as it added over the previous quarters (three million).
User growth was driven by international users with just one million of new monthly users coming from the US. Monthly users in the US have remained steady throughout much of 2017. Year-on-year, user growth was up a modest 3%.
The company attributed the positive results to various factors including new products such as video timestamps and bookmarks. Curated news timelines were also mentioned as a likely driver of growth. At the same time, the site has been focusing on cracking down on fake accounts.
Nick Fletcher, Vice President, Rakuten Marketing also mentioned that “recent moves such as doubling the character limit demonstrate the platform’s savviness”.
Meanwhile, Bazaarvoice’s GM of EMEA, Joe Rohrlich, added:
“Twitter has been busy cleaning its ecosystem and it seems the hard work has paid off. In the virtuous position of now being one of the most trusted social platforms, active user figures put Twitter at an advantage in driving further adspend growth in Q2. The area of real interest for brands and retailers should be user generated content. Twitter has done a fantastic job of incorporating more video-oriented content, which brands and retailers can use to build trust and authenticity around products. Given 50% of shopping is now conducted via mobile, the platform can push conversions skywards with further ecommerce integration.”