While Twitter has a strong core base of famous personalities, the social media platform has failed to build a broader appeal like Facebook, Instagram or other social media platforms among the masses, which has repeatedly hurt its ability to bring in more ad revenues. Chief executive Jack Dorsey welcomed "a strong finish to the year", and added "I'm proud of the steady progress we made in 2017, and confident in our path ahead". In the last quarter of 2017, Twitter had 330 million monthly active users.
Now that is great news for the company but there is still some bad news to report-the total number of users remained flat.
Despite Twitter's problems these past few years, "it is unlike any other social media platform", Grygiel said.
It would surprise most people to find out that Twitter just recently posted its first profitable quarter in the history of the company.
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The profitability is an important achievement for Twitter, which has lost money consistently since its public offering, sparking speculation on whether it needed to sell itself to keep operating. The compelling question is whether Twitter's popularity has been driven by Facebook's recent moves to restructure the news feed less in favour of advertiser and publisher content. "It shows that Twitter has staying power", Grygiel said. Ultimately, this should help continue to differentiate the platform, drive user engagement and increase the user base.
From October to December, Twitter increased its revenue by 2 percent to $732 million, beating the $686.4 million that analysts surveyed by Bloomberg expected. "We are committed to making Twitter safer, and we are clarifying our policies, improving our enforcement, and communicating more clearly", the company said in a tweet.
Finally, Twitter has reported its first quarterly net profit last day and the topped Wall Street targets as the video ad sales have risen by a comparative margin. Twitter is clearly trying to make story-telling easier by allowing even more context to its algorithms to make them smarter when it comes to serving ads, with the addition of live formats to its features.
Shares climbed by 15% in the news.