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How Much Money Has Twitter Lost?
The question of how much money has Twitter lost has been on the minds of everyone since it began its services. The social networking service has seen its revenue rise 37 percent in the past year, but its net income dropped from $222 million to $1.14 billion. This is tied to a lawsuit settlement that cost the company $766 million. The company also reported user growth that was near-misses. So what is going on?
Twitter’s revenue rose 37 percent from a year ago to $1.28 billion
Twitter’s monetizable daily active users (mDAUs) increased by 13% year-over-year to 211 million in the third quarter of 2016. At the same time, the number of users in the U.S. rose to 37 million. The platform continues to see strong growth in advertising. To see also : How to Make Twitter Private. Twitter shares surged 4% after hours following the earnings release. The company’s revenue outlook is also bright: the company will be able to fund its expansion of its business through new features.
Twitter has continued to strengthen its global conversation through partnerships with Dow Jones Corporation and Fox News. The social network announced it would renew the WSJ What’s Now series as well as content from Investor’s Business Daily, MarketWatch, and Barrons. Twitter also announced a partnership with Fox Sports to bring college football content to its platform. Additionally, Twitter has introduced a safety mode to protect its users from disruptive interactions.
Its net income was down from $222 million
In its fourth-quarter report, Twitter Inc. reported net income of $182 million, down from $222 million a year earlier. See the article : How to Post Video on Twitter and Facebook. Its revenue climbed by 22% on stronger ad sales, but its costs soared by 35%. In pre-market trading, Twitter shares jumped 7%. It also warned that audience growth will slow after the pandemic-fueled surge of last year.
In addition, analysts have speculated that the company overcounted some accounts from Q1 2019 through Q4 2021. They estimated that it generated between 1.4 million and 1.9 million more mDAUs in those quarters. This may have happened because Twitter launched a feature that allows users to switch between accounts. This meant that any time the primary account took an action, the linked accounts were counted as an mDAU.
Its net income is tied to a lawsuit settlement of $766 million
Twitter will post its first earnings report under the leadership of new CEO Parag Agrawal, who was promoted from chief technology officer last year. The new CEO faces a steep learning curve as he faces social and political issues he doesn’t have any experience with. Read also : How to Change Your Name on Twitter. Investors are waiting for him to start making decisions that will help improve the company’s performance. Here’s a closer look at the company’s financial results.
Its user growth was near misses
Twitter is gearing up for its most ambitious quarter ever, and it’s already missed its user growth targets by nearly a million users. It aims to hit 13 million monetizable daily active users by the end of the year, which would be the highest growth rate for the company. The company has only managed to hit eight million users this quarter, and shares of the company are down 1% in afternoon trading.
As a result, Twitter’s revenue guidance for the next quarter was a near miss for analysts. Revenue was US$1.2 billion, but analysts had been expecting a slightly higher figure. Also, the war in Ukraine had an impact on revenue growth. Furthermore, advertisers have cut back on spending due to high inflation, which is at a four-decade high. Twitter CEO Elon Musk has suggested that the company should not serve ads and instead focus on the service itself. However, a move like this would limit the company’s control over content policies and may cause a loss for users.
Its future is uncertain
If Mr. Musk’s bid becomes a reality, Twitter could face significant challenges. Already, it has laid off about a third of its talent acquisition team, and fired two of its top executives. In a February earnings report, the company predicted spending between $900 million and $925 million on stock-based compensation in 2021. That would put the company in a precarious financial position, and its stock price would plummet to an all-time low.
The sale of Twitter by Elon Musk has fueled speculation that the social networking platform will not continue as-is. Elon Musk has already said in public statements that Twitter should not allow advertisements, and that he wants to control its content moderation policies. Twitter has yet to comment on the future of the service, so speculation about what may happen is premature. But Elon Musk has promised that it will not ban any accounts. The company’s future is unclear, and the political impact of this deal is significant.
