The Twitter Q1 2018 earnings shows the microblog can indeed post a profit and grow its user base at the same time but there’s plenty more room for improvement…
Twitter has started the year off strong, at least from a business perspective. For the second time in its history, the social site made a profit and it grew its user base once again. Those are two feats which the company has long struggled to achieve at all or with any real consistency.
Twitter Q1 2018 Earnings Report Reveals Profit and User Growth
Twitter posted its first profit ever in its Q4 2017 earnings report. But, the microblog lost users during the same period. However, it’s turned around for the next period. It added 6 million new monthly users in Q1 2018. The company has only shown such growth two times since the beginning of 2015. In fact, during the most recent quarters, Twitter gained just 3 million monthly users or less. (It even lost users during some of those periods.)
But, there’s a caveat in the user gains. It mainly came from international markets, with just 1 million new users in the United States. That’s not comforting since this figure has largely remained the same for the past year. Twitter needs growth in the U.S. because it’s the most profitable region. And, overall growth isn’t fast-paced. The company is up by just 3 percent year-over-year.
Twitter continues to experience the same frustrations. It can’t keep up with its bot problem. It’s suffered rampant harassment issues. The company can’t find a consistent way to make money. And, new users find it difficult and perplexing to work the platform.