However, the network announced a new quarter of losses
Signing Twitter, one of the best known brands in the world of internet but a business that has so far been unprofitable, it announced another quarter of losses, but less than the first quarter last year.
The company, based in San Francisco and created in 2006, reported today that in the first quarter of this year had losses of 61.5 million dollars, below the 79.7 million of the negative result that recorded in the same quarter of 2016.
The quarterly result showed a loss per share of 9 cents, also below the negative result of 12 cents it had in the first quarter of last year.
And as for its quarterly revenues, Fell 8% between January and March compared to the first quarter of 2016, to 548 million dollars.
Wall Street, accustomed to seeing Twitter data that shows quarter after quarter the low profitability of the business, found that the data were less bad than expected and were rewarding their titles with a near-average 10.5% session.
Twitter announced some data that generate some optimism in the stock market: between January and March passed had a growth of nine million users, reaching a monthly average of 328 million active users worldwide.
Wall Street often uses the Twitter case as an example that a good product, and as massive as that of this firm, may not be profitable, And the company has been demonstrating since it began to publicly report its results.
Today’s data also maintains this trend: it is the first time since Twitter began trading on Wall Street, more than three years ago, that it recorded a reduction in its quarterly revenues.
Analysts were expecting that, excluding extraordinary deals, the firm would see a 1 cent increase in earnings per share, and the company announced that adjusted profit was 11 cents per share.
Analysts had also anticipated revenue of $ 512 million, slightly less than what Twitter finally announced.
Those data also influenced Twitter shares to rise on Wall Street today, despite the fact that bonds have fallen 17% in the last twelve months.
When Twitter made its launch on the stock market, on November 7, 2013, it closed with a price of 44.9 dollars. Thanks to today’s advance, each company title was quoted at $ 16.17 near the mid-session.
That price gives a stock market capitalization of about $ 12 billion, a very low amount compared to the $ 427 billion that Facebook has, for example.
Although since the launch of the New York Stock Exchange, Twitter has been posting losses quarter after quarter, its managers are confident that this year they could close a period with benefits.