Twitter Inc (TWTR) Gains In Asia Amid Slowing U.S. Growth

Updated on

Asia is emerging as an important market for Twitter at a time when the company needs to focus on international revenues owing to saturation in the U.S. market

Twitter Inc (NYSE:TWTR) might be struggling to add more users, but a report from eMarketer brings some good news for the social media company. Twitter is expected to see a 34% hike in users in Asia this year, according to a report from eMarketer.  In the United States, this number is expected to increase at the rate of only 12% this year.

India, Indonesia emerge as big markets

By 2015, growth in Asia will drop to 15%, but still will be above worldwide average growth of 11%. the number of users in the Asia-Pacific is already more than North America and Western Europe.

India is the third-biggest market for Twitter Inc (NYSE:TWTR) and is expected to increase 57%, whereas Indonesia will surge 62% according to eMarketer. China is, however, not covered in the research because Twitter is banned in the country. Japan is the second largest market for Twitter and is expected to increase 17% this year.

Twitter need to expand globally

Excluding the United States, active users on Twitter Inc (NYSE:TWTR) total to 78% of the total users in the first quarter, but represent just 28% of its revenue, according to the company. Total user growth is also declining. According to Twitter, its membership in the first quarter increased by 25%, which is a decline from 30% growth in the previous period.

The report suggested that the micro-blogging site should be more focused on increasing its revenue outside the United States. In a conference call with investors last month, Chief Executive Officer Dick Costolo said that the company is making efforts to expand its sales internationally by expanding the reach of its self-serve advertising product.

Twitter Inc (NYSE:TWTR)’s stock has dropped around 50% so far this year due to selling spree in the technology sector.  There has been a decline of around 18% since the lock-up period expired on May 5th. However, CEO Dick Costolo assured investors that top-line executives are devoted to the company, adding that the directors and top executives are all holding their shares. Costolo said that all BoD members including co-founders Even Williams and Jack Dorsey will retain their shares even though the tech shares are experiencing sell off.

Leave a Comment