Twitter profits on the rise despite slowing growth

Posted on February 10, 2015

 

The most recent quarterly report for microblogging site Twitter has contained some good news for the company, although analysts are worried about its longevity.

It was found that while the social platform was reporting an increase in its revenues for Q4 of last year, Twitter was not gaining the new user numbers that it was expecting.

With fewer monthly active users (MAUs) signing up to engage on Twitter’s news feeds, some analysts believe that it could be indicative of the brand beginning to reach a point of saturation.

However, with the social firm’s revenues growing to $479.1m (£312.8m) over the quarter, which was ahead of Twitter’s estimates, as well as a good value being earned on its shares, the company may not be worried quite yet.

That said, with MAUs being a factor to fuelling both coffers and advertisement engagement, the lower than predicted user growth could become a problem. Over Q4, the firm was hoping to see around 292 million new users sign up to its services; however, only 288 million MAUs joined. This was an increase of 1.4% on Q3.

Twitter does seem to be taking a number of active steps to combat its growth issue, with a raft of new features being introduced. This includes natural video editing and enhanced image options, which has been viewed as a way to compete against the likes of Instagram.

It was also announced that Twitter and Google are to work much more closely together. However, details of the new deal have not yet been released at the time of writing.

When he’s not editing web copy and news articles at work, Web Content Editor Tom sates his love for the written word by losing himself in a good book.
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