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Twitter's 5 million new users aren't enough

The company is still struggling to make a profit.
Roberto Baldwin, @strngwys
April 26, 2016
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First the good news: Twitter added an additional 5 million monthly active users during the first quarter of 2016. The company can now boast 310 million subscribers. That's both a year-over-year and quarterly increase. The bad news is that the company is still not profitable, as it booked a $79 million loss for the quarter.

The actual financials are a mixed bag. The company generated less revenue ($594.5 million) this quarter than expected. In fact, it made more last quarter (Q4 2015), pulling in $710 million. Twitter noted that its revenue was in the expected range, albeit at the low end. But, the company is closing in on profitability. During the first quarter of 2015, it only made $436 million in revenue and lost $162 million.

While those numbers are bad, the increase in monthly active users increase should make Twitter investors a bit happier. Last quarter the company's user base declined by 2 million.

During the quarterly Periscope stream about its results, Twitter CEO Jack Dorsey said the company will continue to focus on live experiences. To highlight how well those types of events work on the service, Dorsey said that after its deal with the NFL, almost every sports league contacted it for talk about a partnership.

As for the updated timeline, Dorsey said that Twitter has seen an increase in tweets, retweets, replies and likes but didn't offer up any solid numbers. It's safe to say, though, that we shouldn't expect Twitter to follow Facebook Messenger any time soon. In response to questions about AI and customer service, Dorsey instead talked about the recent update that allows companies to make conversations with customers private. While he said the company is very excited about deep and machine learning, it remains unclear when or if bots will invade the platform.

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