Trump tweets don't help: 1st Twitter revenue drop since IPO

Trump's constant tweeting isn't lifting Twitter's profit

Twitter has reported its strongest growth in monthly active users in more than a year and a much better-than-expected quarterly profit, despite stiff competition from Facebook and Snapchat, sending its shares up 11%. Average monthly active users reached 328 million, up 6% vs. 4% in the prior quarter, while daily active users jumped 14% compared to the same time a year ago.

Twitter shares rallied 11 percent in pre-market trade, suggesting an easing of fears about the path forward for the micro-blogging service. In addition, Twitter said it had 328 million monthly active users, up 6% year over year and 3% sequentially.

Twitter has been seeking to broaden its appeal beyond its core user base of celebrities, politicians and journalists, ramping up efforts in video and live sports, notably.

Twitter has reported its first decline in revenue as advertisers pulled back from the social media service favoured by Donald Trump, celebrities and journalists.

Revenue fell 7.8% to US$548.3mil (RM2.38bil), its first drop since its initial public offering.

Twitter on Wednesday beat analysts' expectations for its first-quarter earnings and revenue before the opening bell.

Twitter is also doing a better job as rolling out new products, and meeting the needs of average users, said Dorsey. The company was also exploring sale options the previous year but the price tag was a bit high for most companies interested in buying it.

Twitter said it expects overall revenue growth to "meaningfully lag" audience growth throughout 2017. Examples include deploying machine learning to show users more relevant tweets, rolling out product improvements at a faster clip and making it easier to reply to tweets.

Twitter has surprised analysts in its latest quarterly update, posting better-than-expected figures for both user growth and revenue.

Though Twitter didn't say specifically that Trump's constant - some might say compulsive - tweeting was responsible for the modest growth, but Chief Operating Officer Anthony Noto said that usage by politicians appears to have contributed to the gains. Analysts had been looking for earnings of 2 cents per share and $517 million in revenue.

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