Is Twitter Out Of Hot Water?

For the full year 2017, Twitter’s revenue declined 3% to $2.4 billion. GAAP net loss was $108 million or $0.15 per share compared to loss of $457 million or $0.65 per share a year ago.

For the first quarter, Twitter expects adjusted EBITDA to be between $185 million and $205 million. It did not provide specific revenue guidance for the first quarter and full year 2018.

In January, COO Anthony Noto announced in January that he would be resigning from Twitter and would be taking over as CEO of finance startup SoFi from March. Twitter has decided not to replace him, but instead split his duties among other executives.

Questions for the Board

There is huge media pressure for social media giants Facebook and Twitter to take more responsibility for hate speech, fake accounts, fake news, destroying democracies, etc.

Twitter has introduced new measures to tackle these issues. As per its new rules, it will remove tweets that glorify violence or the perpetrators of a violent act and will permanently suspend accounts that repeatedly violate this rule. Even accounts that affiliate themselves with organizations that “use or promote violence against civilians to further their causes” will be suspended.

But will these be enough? Under Twitter’s old policies, specific threats of violence, death, or disease to an individual or a group of people were considered a violation. But Twitter plans to do a better job now with better communication. Will it be execute better?

As it deals with the issue of fake accounts, what will be the effect on its user base? Twitter’s user base of 330 million is still minuscule compared to Facebook’s 2.13 billion. Although Twitter has achieved profitability, albeit by cutting costs, its revenue and subscriber growth is meager. How does it plan to address this? Will it be able to sustain the momentum and deliver profits in the future as well? Will it be able to achieve that without COO Noto?

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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