In the world of social media it is certainly difficult to stand out these days and very few have become successful and carved out a niche market for themselves. Twitter is hardly a company we would expect to need a niche to survive as it has been around for ages ““ 9 years this past March. That being said, Twitter is still not making money, even with 300 million active users as of Q1 in 2015.
In its latest earnings report, Twitter announced that it has reached 302 million active users which is an 18 percent year-on-year (and a 5 percent quarter-on-quarter increase) increase. Their revenues have also grown significantly, up 74 percent from a year ago to $436 million. This didn‘t translate into any profits, though, as the company still posted a net loss of $132 million in the first quarter of 2015.
Twitter has been investing heavily in video over the last 12 months, with offerings like Vine and Periscope already in its stable. They are also improving their advertising efforts. They acquired TellApart, which is a marketing tech firm that previously helper Facebook‘s advertising department. Also, they have formed a partnership with Google‘s DoubleClick platform which will offer more precise advertising performance metrics to marketers.
With cash hungry investors breathing down their necks it will be interesting to see how Twitter responds in the next 12 months.
Source: Twitter
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