Twitter is *finally* profitable for the first time ever

Twitter is *finally* profitable for the first time ever

Image: RICHARD DREW/AP/REX/SHUTTERSTOCK

It turns out cutting back, focusing, and maybe a little Donald Trump can help make money. 

Twitter reported its first-ever profitable quarter Thursday after more than four years of trading on the public market. The company announced $91 million in profit for the fourth quarter of 2017. Profitability was the #goal, CEO Jack Dorsey told investors in February 2017, and Twitter nailed it. The stock was up by more than 14 percent in after-hours trading.

Monthly user growth remained flat. Twitter announced 300 million monthly active users, the same as last quarter. But it did achieve a 12 percent year over year growth in daily active users.

“Q4 was a strong finish to the year,” Dorsey said in a statement. “We returned to revenue growth, achieved our goal of GAAP profitability, increased our shipping cadence, and reached five consecutive quarters of double digit DAU [daily active user] growth. I’m proud of the steady progress we made in 2017, and confident in our path ahead.”

The margin is small, but it did beat expectations. Twitter brought in $732 million in revenue, beating analysts’ estimates of $686 million and up by 2 percent from a year prior. That’s also a return to revenue growth.

Profitability looks great. But as Dorsey said himself, it can be a choice.

“It is a choice between investment and driving profit,” Dorsey said at Twitter’s international headquarters in Dublin, rounded up in a piece by Silicon Republic. “We believe there is a massive opportunity to grow and invest in the business.”

The rise wasn’t easy. Twitter had several rounds of layoffs and cut investments like shutting down six-second-video app Vine and selling its developer platform Fabric to Google. It’s been removing the advertising product TellApart. 

But Twitter has focused on other initiatives, such as live video. Twitter has a 24/7 live video partnership with Bloomberg and has inked dozens of deals with other networks for shows. 

from Mashable! http://on.mash.to/2sf4jiv
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