Twitter revenue doubles as investors remain dissatisfied

NetEase Technology News February 6, U.S. stocks closed. Twitter's share price rose 12% after a short stint. Twitter's fourth-quarter revenue grew 97% per cent year-on-year, with a net loss of 125 million dollars, a sharp reduction of 75.5% per cent from the net loss of 511 million dollars over the same period last year. The doubling of quarterly earnings, which narrowed the number of losses, went beyond Wall Street's expectations and deserved a rise in share prices. So how do we explain the rise in Twitter's share price first? Revenue doubling: Mobile-end advertising is the main driver in order to achieve the growth of the advertising business, Twitter CEO Costello reorganized his main management team in 2014, with COO, CFO and product owners changing. In the last quarter, management tried to show Wall Street the strength and potential of the platform to gain revenue. To allow users to stay on the platform for longer, Twitter accelerates a series of new features, such as the ability to shoot and edit videos, the ability to send messages among groups, and so on. Currently, Twitter is also preparing to launch a new homepage and the instant timeline (real time timeline) feature that allows users to get started. In the fourth quarter, users viewed the timeline more than 2 billion times a year earlier, indicating an increase in user stickiness. Advertising revenue from the mobile side accounts for 90% of Q4 's advertising revenue, and it is clear that mobile-side advertising has become the focus of Twitter's revenue. In addition to advertising revenue from the platform itself, the company is also trying to expand the opportunity for tweets to be seen. Recently, Twitter and Google have reached an agreement that tweets will be placed more in front of future search results to give users more opportunities to use Twitter. Twitter will also launch "promoted tweets". The so-called "promoted Tweets" refer to the push ads that will appear on partner Flipboard and Japanese yahoo sites. Twitter is also trying to get more third-party developers to use its mobile-end ad market service MoPub. Through MoPub, third party developers can implement ad presentation within the game or within the application. In addition, income from overseas has risen more than once this quarter. Stock prices first and then Yang: The reason for the slow growth of users is explained that the company's share price rose by only 1.3% per cent by the end of the year, and then rose by 12%. Since Twitter's business is booming, why did investors ' initial reaction be more negative? Why is there such a "singular" phenomenon of the first inhibition and then Yang? While Q4 's income and net losses are better than investors ' expectations, the key monthly growth in live users worries investors. This quarter of the number of live users reached 288 million, only 1.4% year-on-year growth, this growth rate let the investmentThe capital was surprised (the average Wall Street forecast was 2.8%). By contrast, Facebook's photo-Instagram has exceeded Twitter's monthly active subscribers by more than 300 million people. Some investors say that while revenue and profits are important, the company's main focus should be on the growth and retention of users. For poor user growth, management explained that "unanticipated bugs" in Apple's IOS8 upgrade resulted in up to 4 million of potential new active users being unable to use the Twitter service. Without this bug event, Twitter will have 292 million subscribers per month. Neither Twitter nor Apple gave a clear description and response to the details of the bug. The company also gave a forecast for the growth rate of Mau in 2015 quarters. Costello said that the number of user growth in each quarter will be the same as the three-quarter growth of 2014 years ago (14.3 million people). "We see that the number of user growth in the January is back on track," he said in a conference call, "and the absolute increase in users in the first quarter will be the same as the average increment in the first three quarters of last year." "In addition, we have also given the investment community a shot of doping in the above mentioned cooperation with Google." Costello said the partnership will bring more new users to the platform. (Fu Hao)