Twitter Records First Profit, Video Ad Revs Drive Boost

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One side goes up and, as if by design, the other side goes down. Not only did Twitter report a quarterly profit, it surprisingly returned to revenue growth as well.

First, things are definitely looking up for Twitter's business.

The company reported fourth quarter revenue of $732 million, an increase of 2% year-over-year.

Advertising revenue totaled $644 million in the lastest period, up 1% year-over-year, while O&O advertising revenue gained 7% to $593 million. Finally, Zacks Investment Research raised shares of Twitter from a "sell" rating to a "hold" rating in a report on Tuesday, October 24th.

Jennifer Grygiel, a Syracuse University communications professor who follows social media, said the results are an important milestone for Twitter. And the company's ad volume continues to seesaw with its ad pricing.

Overall, Twitter posted total revenue of $2.4bn in 2017; a drop of 3% on 2016's $2.5bn.

US Charges Dozens In Massive Cyberidentity Fraud Scheme
The City of London Police are credited alongside other worldwide police forces for "siginificant efforts and timely cooperation". Another eight have been detained in other countries including Australia, Italy, and Serbia, and await extradition to the US.

Many potential users may also be wary of Twitter's influence on politics. In particular, we're interested in following the company's continued and robust growth and excited to see the company finally reach profitability. That's the second time in just one year that US users dipped. Both revenue and adjusted earnings per share for the fourth quarter beat analysts' estimates.

There's still one area of persistent trouble for the company, however: user growth.

As expected, MAU was impacted by seasonality and the change to Safari's third-party app integration, which affected approximately 2 million MAU in Q4 (roughly 1 million in the United States and 1 million in global markets), as well as increased information quality efforts, which are our overall efforts to reduce malicious activity on the service, inclusive of spam, malicious automation, and fake accounts.

Monthly active users were 330 million, flat sequentially but up 4% year over year.

The company attributes the U.S. user loss to "seasonality" and a change to the Safari web browser impacting its third-party app intergrations. During Thursday's earnings call, Segal said the change resulted in 1 million fewer monthly users in the United States and 1 million fewer outside of the US. As a result, Twitter's user base pales compared with Facebook and the Facebook-owned Instagram. The Company's products and services include Twitter, Periscope, Promoted Tweets, Promoted Accounts and Promoted Trends. The number of monthly average users remained flat quarter-over-quarter, which was lower than analysts had expected and which Twitter attributed to a change to Safari's third-party app integration and the company's own efforts to reduce spam, malicious automation and fake accounts, problems that have taken on new urgency for Twitter as it has became clear how Russian-linked accounts influenced content on the platform around the 2016 US presidential election. At the time, Apple stopped automatically updating the list in the background, requiring people to open the "shared links" tab to refresh the list and become a Twitter user, though not a Twitter user that the company could serve with ads.

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