Technology

Twitter Turns In Its First Annual Profit, But It Comes At A Price

Twitter is profitable for the very first time, but it comes at a price.

The company revealed its monthly users are shrinking – currently at 321 actives users, which is five millions fewer than the previous quarter and 9 millions less than the same time last year.

Twitter said the decline was as a result of different factors, including changes to data privacy protection in Europe and “health of the service” as the company tries to stop fake news.

It also marks the third successive quarter that the social media company has seen a decline in users. The company has also revealed that it would stop publications of monthly active user number after the first quarter of this year in favor of a newly introduced figure on “monetizable” daily active users.

It isn’t all dark though as the company reveals it currently has 126 million daily users, up from 124 million in the prior quarter and 115 million this time last year, which shows growth.
While there may be decline and slow down in user growth, the company has finally found a way to make profit – as the company posted a profit of $1.2 billion – the first since going public in 2013, pushed largely by video advertising on the platform.
It has always not been easy for the company though as they had to discontinue vine and layoff employees in an effort to cut cost.

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