Twitter Inc (TWTR) Hopeful for 18% User, 51% Revenue Growth This Quarter


Twitter Inc (NYSE:TWTR)’s little blue bird is on the rise, flying high. The end of 2014 proved to be good for the troubled social media giant. Although, user growth was a big disappointment for the company but still, investors are now hopeful that this year will bring some suitable prospects for Twitter Inc (NYSE:TWTR). In an article on Fool, Adam Levy said that Twitter’s biggest and only disappointment was its slow user growth. The company ended 2014 with only 288 million users. Even Instagram’s users are more than this (I know Twitter’s management gets offended by this comparison).

Twitter Inc (NYSE:TWTR) is using its cost per one thousand timeline views model for ads. For this, the company needs good cost per ad engagement. The source said that Twitter Inc (NYSE:TWTR) saw a 10% increase in its cost per ad engagement on timelines. This is a massive growth rate and a good news for Twitter Inc (NYSE:TWTR) because this will allow the company to attract advertisers. It will also increase the user growth because many users are looking for alternatives to promote, monetize and sell their products on other ad platforms apart from Google.

Twitter Inc (NYSE:TWTR) has done its calculations. The company is eyeing for 51% increase in revenue per user, which is huge. Twitter Inc (NYSE:TWTR) says that its revenue jump will be around 78% year over year this quarter. This will also increase the user growth rate by 18%. If culminated into reality, these numbers can be a game-changer for Twitter Inc (NYSE:TWTR).

 John Thaler’s JAT Capital Management owns over 7.3 million shares in Twitter Inc (NYSE:TWTR).

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