Twitter earnings: Growth concerns are in the spotlight

For Twitter, growth is the big question on the minds of many tech watchers and Wall Street power brokers.

Issues related to the growth — or lack thereof — for Twitter’s core user base will likely be front and center in the social blogging network’s first-quarter earnings report.

San Francisco-based Twitter jolted investors a few months ago when it reported that its core users — a metric that excludes people who receive tweets by text messages — had actually shrunk at the end of 2015.

The microblogging site had 305 million users in December, down from 307 million at the end of September 2015.

That marked the first time Twitter had suffered an erosion in its core users.

Analysts expect that Twitter will report core users totaling 307 million to 310 million, depending on which Wall Street investment house is doing the guesswork.

For the first quarter of 2016 that ended in March, Twitter’s revenues are expected to grow and its losses are predicted to shrink.

Twitter is projected to have lost $120 million, or 17 cents a share, during its first quarter, compared with a loss of $162 million, or 25 cents a share, in the year-ago first quarter.

Analysts believe that Twitter will generate revenue totaling $607.8 million, which would be up 39 percent from $436 million in revenue the year before.

Twitter CEO Jack Dorsey says the social network’s primary goals are to improve the main product, push forward with live-streaming video efforts, support content creators, prioritize safety and strengthen ties with developers.

To those ends, Twitter is seeking to craft a streaming deal with the National Football League, is paying Vine creators, is battling against extremist messages, is fashioning searches for GIFs and is creating a mobile app for developers.

 

Photo: Twitter image just before its IPO. (Bay Area News Group)

 

 

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