Twitter Reports First-Ever Quarterly Profit

Reuters reports:

Twitter shares surged 22 percent at the market open on Thursday after it reported its first quarterly profit and better-than-expected revenue, helped by ads that better targeted users and sales growth outside the United States.

Investors shrugged off zero growth in Twitter’s users from a quarter earlier, which the company blamed in part on seasonal weakness and its purge of fake and spam accounts. Shares hit $35 in morning trading, their highest level since July 2015. Twitter debuted as a public company in 2013 at $26 a share.

Twitter’s previous inability to turn a profit or turn out consistent revenue growth had confounded investors given the company’s ubiquitous presence in the media and popularity among celebrities, athletes and politicians such as U.S. President Donald Trump.

Twitter’s profitability has long been a regular mocking topic at Breitbart every time a notorious far-right figure loses his account. So far today they are mum on the latest news.

  • bkmn

    I wonder how many shares Putin owns.

  • Ninja0980

    Hence the reason they looked the other way on fake profiles.
    $$$$ over country, every time.

    • Uncle Mark

      It’s why they look the other way when Trump or Sheriff Applebees break the rules, spewing language that would get others banned. These assholes have too many followers to punish

    • RaygunsGoZap

      Came to say!

  • The_Wretched

    Do they still have profits if they delete the russian bots?

    • billbear1961

      YES, that’s what *I* was wondering, too!

    • Uncle Mark

      Good question. The Russian bots are often employed to cheer on Trump and Trump supporters. If people are feeling like no one is liking their posts/comments or that they are being overwhelmed by ridicule, they are less likely to post, respond, or even read posts on twitter. That could translate to less eyes viewing the ads.

      Conversely, if there are more bots supporting their views, Trumpsters will be more likely to spend time on Twitter…reading, liking, and commenting…and viewing ads in that process

  • Butch

    Aside from the fact that I find Twitter the most annoying form of communications ever devised….I guess I’m really dumb on the whole matter of Internet profitability. How does Twitter make any money? There’s no subscription fee, right, so where do the profits come from? I don’t understand.

    • Uncle Mark

      From advertising…much like here on JMG, except the ads are obvious here

    • RaygunsGoZap

      Selling user data?

    • gaycuckhubby

      Advertisement

      • Butch

        I’m not arguing – but where do the ads appear? Do they show up in your Twitter account? (I don’t have an account, so I don’t know. I’m not even sure; can you receive Twitter if you don’t own a cell phone, which I don’t?)

        • gaycuckhubby

          Yes to both. You can have Twitter on your desktop it’s just not as easy to use. And adds do show up in your timeline

          • Butch

            Thanks. I really am as dumb as I act sometimes.

          • gaycuckhubby

            Kisses

        • CharlestonDave

          Tweets of the people you follow on Twitter show up in your Twitter timeline. Twitter inserts “sponsored” tweets in that stream. I presume those ads are targeted based on the people you follow or cookies on your computer revealing what sites you’ve visited. The advertiser paying for the ad pays a premium knowing that you are the kind of person they want to target.

          I follow about 75 Twitter accounts, including Neil Patrick Harris, Richard Dawkins, Mrs. Betty Bowers, Ronan Farrow, and Seth Abramson. I do curate that list; anybody that tweets twaddle gets deleted because it wastes my time. My current timeline has seven ads: Hulu, Starz, SAP Blockchain networks, ancestry.com, Lenovo, the Chicago Blackhawks pro hockey team, and Columbia Threadneedle investment advisors. Each of those advertisers paid a few pennies to have their ad scroll in front of me. That’s the Twitter income from me. BTW, from that ad list, I’d have to say the Twitter matching algorithm sucks.

          Twitter advertising is cheap enough that it’s feasible to microtarget your customer demographic.

          Twitter works fine on a desktop. I scan tweets more often there than on my cell phone.

    • clay

      Selling search results. They attracted their initial investors with promises of being able to search terms by popularity and by time (and by place, but the courts forced to be an opt-in, which means it’s not available in any meaningful way).

  • BobSF_94117

    That’s a shame.

  • Taylor Bixler
  • tbj5

    And we’re ready to see them use 0% of that profit on stopping bots and Nazis from attacking users.

  • Cuberly Deux

    Well, they didn’t make a penny from me.

  • gaycuckhubby

    I know people are critical of Twitter, but I love it. And I think it’s a very important means of communication and community.
    I also think it’s important to note how Twitter became mainstream, it Rose at the same time that the Arab Spring was happening. And it allowed the demonstrators to take their cause to a much wider audience

  • Hank

    I am neither a member of Twitter, nor Facebook. If people want to get in touch and keep up with me, they can call, email or send a snail letter letter!!!!

  • clay

    . . . and I’m sure Twittler will claim a chunk of the credit. Watch Sarah ‘splains i; t;all this afternoon.

  • gaycuckhubby

    LOL at all the Twitter hate here when 2/3 of all of our off topic links and breaking news commentary comes from Twitter.

    • Tread

      We can hate on the communications platform but it’s become ubiquitous in how news outlets break news. You can do two things at once

      • gaycuckhubby

        I know. Trump does it with CNN

  • TheManicMechanic

    All those fake Russian puppet accounts must be worth something, no?

  • Will Parkinson

    Waits for tweet from Trump taking credit.

  • imma gonna go take a shower soon, but i’ll come back to this thread if anyone wants to respond. so, like, i’m really stoopid about money and investing and “profit” and all that stuff. but i’m confused. how much of a ‘profit’ did they make? where did that money go, exactly? how was it counted, and by whom? may i see the financial summary? from the article:
    Twitter reported a net profit of $91.1 million, or 12 cents per share,
    compared to a loss of $167.1 million, or 23 cents per share, a year
    earlier.

    so in my world, that would be a net loss of about $70M. it’s nice when you start to finally make money in your biz, but if you’re a billion dollars in the hole, making $70M in one quarter hardly counts as “profitability.” but i live in the real world, not the video poker game reality called “Wall St.”

    • The_Wretched

      And all the *profit* will go to paying off the initial investors. They have years of losses (capital investment) to pay back.

  • Nic Peterson

    What’s a twitter?

  • Friday’s_cat

    Is that profit in Rubles?

  • JWC

    Still regard Facebook , Twitter and the others as non essentials