Financial report data shows that Twitter is suddenly doing well again

Twitter's 2017 Q1 financial report was released, which gave the gloomy Twitter a shot in the arm. Its stock price soared by 8% that day and once soared by 11% during the trading session. This was because both the loss and user growth were better than market expectations.

Twitter's revenue in the first quarter was 548 million yuan, down 8% year-on-year, with international revenue accounting for 38%.

If you can’t generate income, you can save money.

Although Twitter's revenue is declining, the good news is that Twitter's losses have narrowed, from a loss of $80 million in the same period last year to a loss of $167 million in the fourth quarter to $62 million. This shows that although Twitter is not good at increasing revenue, it has ways to cut costs.

The number of users has reversed the past decline in growth and seems to be improving significantly

Twitter's MAU reached 328 million in the first quarter, a year-on-year increase of 6%, which is higher than the growth rate in recent years.

What is even more rare is that the growth rate of DAU is even faster and faster, increasing by 14% year-on-year, which is better than 2016.

The reason for Twitter's growth recovery is mainly due to the personalized transformation of information flow + personalized recommendations, as well as the layout of live content

Twitter's user growth is accelerating. The official explanation is that the improvements made to the product are gradually showing success. For example, in the past, users could only see information streams on Twitter by time, but now they are recommended information streams that users are interested in based on personalization. Twitter has also adjusted the word limit and no longer counts the number of @ accounts, giving users more room to express themselves. In addition, Twitter has also strengthened its personalized recommendation capabilities, which can increase its ability to recall users.

In addition, Twitter's professional live broadcasts have a good ability to attract attention. The live broadcast lasted 800 hours and attracted 4,500 users, 55% of whom were under 25 years old.

Advertising effects are changing, advertisers’ costs are decreasing, so there is a lot of room for growth in the future?

In the first quarter, user interaction with ads increased by 139% year-on-year, but at the same time, advertising costs fell by 63%. It seems that this is more attractive to advertisers, so the question is, will advertisers continue to come back and increase their investment? If it is indeed an effective platform, I believe it will be possible.

199IT original analysis