Performance of Twitter in 2Q17: R&D, Ad-Blocking, and Video

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Part 7
Performance of Twitter in 2Q17: R&D, Ad-Blocking, and Video PART 7 OF 15

Inside Twitter’s International Business

Twitter looking abroad for growth

Twitter (TWTR) is working to grow its business abroad, including increasing its presence in the underpenetrated international markets. Internet giants Twitter, Facebook (FB), Alphabet’s (GOOGL) Google, Amazon (AMZN), and eBay (EBAY) are investing overseas in pursuit of new growth opportunities. For example, Amazon has pledged to invest $5.0 billion to grow its business in India (INDA), which is heating up for Internet and technology companies.

What is Twitter getting from its international push? A study of Twitter’s International segment reveals some interesting developments in the segment. The chart below shows Twitter’s International revenues for the last five quarters.

Inside Twitter’s International Business

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International sales down 1%

For 2Q17, Twitter generated international revenues of $239 million, down 1% from 2Q16. However, Twitter’s International segment contributed 42% of its total revenues in 2Q17, up from 38% in 1Q17 and 40% in 2Q16. Twitter’s US revenues fell 7% to $335 million in 2Q17.

International users up at least 1 million

While Twitter’s overall MAU (monthly active user) base was flat between 2Q17 and 1Q17, the company registered MAU growth in its International segment. Its international MAUs increased by at least 1 million in 2Q17 over the prior quarter to 260 million. In contrast, the company’s US MAUs fell ~2 million quarter-over-quarter. Twitter had 328 million worldwide MAUs at the end of 2Q17.

In the last few years, Twitter has taken several steps to grow Its international segment. In 2Q17, the company inked 40 live-streaming video deals, with ten of them being international deals. The company has also rolled out a lighter version of its social media app in India to encourage usage in the country.


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