Twitter has been one of the most popular social media platforms in the world for the past decade. It has hundreds of millions of active users. Pretty much every celebrity uses Twitter on a regular basis to reach their fans and make public statements. This is why there is a commonly held belief that Twitter is raking in the cash in the same way that Facebook is. However, nothing could be further from the truth. The reality is that Twitter has always had a problem generating a profit. It would surprise most people to find out that Twitter just recently posted its first profitable quarter in the history of the company. Twitter decided to go public in 2013.
Twitter has been through a very difficult period that has seen the company lay off many employees. The CEO position has also changed hands several times. Jack Dorsey, one of the co-creators of the company, has returned to the helm. Twitter’s video streaming service called Vine was done away with because it was not turning a profit the way the company had hoped. Much of the profit that Twitter has made came from a 2% increase in advertising revenue from the same quarter last year. Overall, the company generated more than $700 million in ad revenue last quarter. Jack Dorsey recently said that he expects Twitter to make a profit for the rest of 2018.
The report of the profits was recently released to Twitter shareholders. This caused the stock to go up by 20%. One of the biggest changes to Twitter occurred last quarter when they finally decided to double the amount of characters that a user can include in a single tweet. Dorsey has said that this has led to an increase in retweets. He also said that much of the confusion surrounding the use of Twitter has been eliminated.
It was not all good news for Twitter. They have not been able to grow the number of people who use the social media platform on a regular basis. In fact, the number of users in the United States went down slightly during the quarter. The number of users on a global scale remained basically the same. The failure to attract new users is something that has been a problem for Twitter for quite some time. The company did not address this issue when they released their quarterly earnings report.