International sales now account for 48% of Twitter's revenues

Twitter shares fell on Wednesday after the social network said its revenue growth would slow this year and costs rise as it works to fight the spread of hate speech and allegations of election manipulation through its service.
That outlook overshadowed the second profitable quarter in the 12-year-old company's history, which topped Wall Street estimates for revenue, profit and users.
 
Twitter swung to a net profit of $61 million in the first quarter ended March 31, 2018, from a loss of $61.6 million a year earlier.
 
Quarterly revenue jumped 21% to $664.9 million from a year earlier, but Twitter said revenue growth for the remainder of 2018 will be similar to the slower rates of 2016, when annual revenue rose 14%.
 
Twitter said its tally of daily active users grew 10% year-over-year, lower than the 12% to 14% maintained in recent quarters, a change that "has spooked investors," Wedbush Securities analyst Michael Pachter said.
 
International sales accounted for 48% of revenue, growing 53% year-over-year, compared with 2% growth in the United States. It added 5 million new foreign users in the quarter, five times as many as at home.
 
"We are not that far away from international becoming more than half of revenue at Twitter," Chief Financial Officer Ned Segal told analysts on a conference call, highlighting strength in Japan, Britain, Brazil and the Middle East.
 
But analysts pointed out foreign users are often less profitable for the company. "Adding users in far reaches of the world has very little value for Twitter," said Ross Gerber, chief executive officer of investment firm Gerber Kawasaki.
 
Lawmaker pressure
 
The social media sector is under pressure from lawmakers around the globe for inflaming political debates, allowing abusive language and failing to safeguard personal data, and tighter regulation could mean higher costs.
 
Facebook has come in for particular scrutiny on that front, with its founder and CEO, Mark Zuckerberg, sitting for two days of Congressional grilling this month about how its users' data was improperly shared with a political consultancy.
 
Twitter said it expected to increase its workforce by 10% to 15% in 2018 to make discussions on the service more civil, increase ad sales and meet other priorities. Twitter cut its headcount 6% last year.
 
Twitter has tried tweaks to its core product to try to broaden its appeal. Last year it doubled the maximum length of tweets in most languages to 280 characters, and it added customizable anti-harassment tools such as the ability to mute tweets with certain words.
 
The company has developed live shows and broadcast live events to get people to spend more time on the service and to sell video ads to marketers. Videos accounted for more than half of ad revenue in the quarter.
Shoot

Trending News

Xiaomi pumps Rs 3,500 crore into India business

BlackBuck's out to raise $150M in new round, valuation likely to jump to $800 M

With $21 Billion, Azim Premji among world’s top philanthropists

Google agreed on a $45M exit package for India-origin exec accused of sex abuse

HSBC pegs Zomato's valuation at $3.6 billion ahead of Swiggy

PayU in talks to acquire online payments firm Wibmo for $60M

Quikr close to acquiring refurbished goods marketplace Zefo in all-stock deal

What life looks like after a layoff from an IT company

General Atlantic & Tencent pump in another Rs 80 Cr in ed-tech unicorn Byju's

US Senator Warren vows to break up Amazon, Facebook, Google

SoftBank extends tech reach with $5B Latin American fund

Coverfox hits the market to raise $50M in new financing round

Cognizant faces US lawsuit alleging discrimination

China's Huawei sues US over federal ban on using its products

Germany's Delivery Hero acquires Zomato's UAE biz, invests in India ops

Ahead of deadline, debate rages on e-commerce policy

Flipkart rejigs reporting of Myntra-Jabong head Amar Nagaram

Grofers raises fresh funds from existing investors, valuation hits $425M

Sachin Bansal invests Rs 250 Cr each in NBFCs Altico & IndoStar: Report

I-bank Wolet files $800k suit over Flipkart’s Upstream buy

Flipkart FY18 revenue up 50%, but losses grow 5x

Pine Labs in talks to acquire Amazon-backed Qwikcilver for $100M

India can become 2nd largest 5G market in 10 years: Huawei

Alibaba rival Pinduoduo seeks to raise $1.5B

Twitter Q4 revenue grows to $909M as video ad sales surge

Mukesh Ambani to invest $1.4B in West Bengal, will help e-commerce expansion

Etail may lose Rs 40,000 crore, retail to get a 3rd of it

Steadview Capital invests $74M in Ola valuing it at around $6B

Byju’s ups revenue to Rs 490 cr in FY 18, losses drop by half

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities