Twitter has been struggling to achieve growth it achieved during its first few years. Twitter revenue has declined. Twitter must take steps to do some revival.
Twitter Revenue Declines
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Twitter has told about its first fall in revenue as advertisers withdrew from Twitter which is favored by Donald Trump, journalists, and celebrities. Twitter has never turned a profit. It said that revenues declined by 8 percent in the first quarter of 2017 to $548m (427m). The social media website reported that advertising revenue for the first quarter, at $474m, has decreased by 11% on 2016. The decline was offset a little by the increase in data licensing deals. Analysts had predicted the revenue fall to be much more. Shares, which had previously dropped by around 10% before the earnings reveal, increased by 13 percent in pre-market trading. Twitter made a quarterly loss of $62m, which is better than the $80m which it lost in the first three months of 2016. The loss is around $700,000 a day. The co-founder and chief executive of Twitter, Jack Dorsey, has said that despite the revenue decline, pursuing to grow the audience for Twitter would eventually result in positive revenue growth. Twitter was initially very popular with users and investors both but it has struggled to keep up the user growth it once boasted of. Twitter said its average monthly active users have reached 328 million, which is a 6%increae on the figures last year. The speed of daily users growth has risen in each quarter of the previous year.
Anthony Noto, Twitter’s chief operating officer, said:
“We believe Twitter is the best place to drive brand perception and we’re continuing to showcase our unique value proposition for advertisers. We’ve received positive early feedback from our ad partners as we highlight the improved return on investment from our audience growth and better pricing.We remain focused on our initiatives to grow revenue by simplifying our revenue product portfolio, communicating our progress to advertisers and reallocating resources to our highest revenue-generating priorities.”
Twitter has lost the appeal it once had. Twitter must up its game to regain its past glory or else it will be left behind.
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