NEWS

Twitter Q1: sales up 3% to $808M as it swings to a loss on COVID-19, mDAUS hit record 166M

Published

4 years ago

April 30, 2020

twitter q1 sales up 3 to 808m as it swings to a loss on covid 19 mdaus hit record 166m

Despite traffic for many online properties being at an all-time high, advertising has fallen off a cliff because of the downturn in consumer activity outside the home and the wider economic pressures resulting from the COVID-19 pandemic. And today, Twitter reported quarterly earnings that bore this trend out.

The ad-based social networking and media company said that in Q1 it made $808 million in revenues, actually up 3% on a year ago, with monetizable daily active users (Twitter’s own metric for measuring its audience) grew 24% to 166 million, an all-time high, adding 14 million average mDAUs since Q4 (152 million) and 32 million since Q1 of last year (134 million).

However, operating income for the quarter swung to a loss of $7 million, working out to a net margin of -1% and diluted EPS of -$0.01.

Analysts had expected, on average, to see $775.96 million in revenues on earnings per share of $0.10, so Twitter beat on sales, and missed on earnings. (Note: Twitter’s analyst consensus, provided to journalists, was a little different and painted a more positive picture: it noted average EPS expectations were -$0.02 on sales of $776 million, with expectations of mDAUs at 164 million. Twitter says that its figures are based on non-GAAP numbers, but even on GAAP EPS Twitter’s actual EPS is a beat on consensus of -$0.02.)

Times have really changed whichever way you look at it. In the same quarter a year ago, Twitter reported sales of $787 million, up 18%; net income of $191 million; and diluted EPS of $0.37.

“In this difficult time, Twitter’s purpose is proving more vital than ever,” said CEO Jack Dorsey in a statement. “We are helping the world stay informed, and providing a unique way for people to come together to help or simply entertain and remind one another of our connections. We’ve delivered our strongest ever year over year mDAU growth. Public conversation can help the world learn faster, solve common problems, and realize we’re all in this together. Our task now is to make sure we retain that connection over the long term with the many people new to Twitter.”

The company said that the quarter played out in “two distinct periods”, January through early March, which largely performed as expected, it said, and eearly March through the end of the quarter, “when the pandemic became global.”

None of this should come as a surprise. Twitter itself announced more than a month ago that it was removing its own financial guidance because of the instability of its business due to COVID-19 — noting only that it would be lower than expected:

“While the near-term financial impact of this pandemic is rapidly evolving and difficult to measure, based on current visibility, the company expects Q1 revenue to be down slightly on a year-over-year basis,” it wrote at the time. “Twitter also expects to incur a GAAP operating loss, as reduced expenses resulting from COVID-19 disruption are unlikely to fully offset the revenue impact of the pandemic in Q1.”

It did point out one bright spot, which is that it is picking up many more users because of increased “conversation about COVID-19 as well as ongoing product improvements.” Then, it said that quarter-to-date average total mDAU was around 164 million, up 23% from 134 million in Q1 2019 and up 8% from 152 million in Q4 2019.

Generally, Twitter’s fortunes this quarter are in line with results from Alphabet/Google and Facebook, which also reported earnings this week that reflect the impact of reduced advertising revenues due to fallout from the the public health crisis.

But even without the impact of COVID-19 on Twitter’s primary business of advertising, the company had been facing a tough time leading into the quarter. Like eBay, Twitter has been the subject of activist investor activity pushing for leadership and operational changes to improve growth and profitability. (Coincidentally, the same activist investor, Elliott, has been behind both efforts.) Unlike eBay, however, Twitter has managed to keep its CEO in place — co-founder Jack Dorsey — but has had to concede board seats as part of a wider financing package and strategy to refocus the business. There may be questions on the call today to see if all of that has been put on ice given how other factors are now in play.

One outcome from the deal it had cut with investors was to provide more actionable plans that translated to growth and profit, and on that front at least Twitter is playing ball.

It notes that it has “shifted resources and priorities to increase focus on our revenue products, particularly performance ads beginning with MAP [mobile application promotion ads], with the goal of accelerating our long-term roadmap.” This has included an ad server rebuild that should be finished by the end of Q2 to implement microservices architecture for more efficiency and to make it easier to make changes on the fly. It’s also implementing direct response advertising, also with the aim of adding new features that it can charge advertisers for.

“We have increased our focus and the relative prioritization of our revenue products, and will shift and add product and engineering resources as practical to increase our pace of execution on this critical work,” it noted in the earnings letter.

Breaking out some specific numbers, advertising accounted for the lion’s share of sales at $682 million, with data licensing making up much of the remainder. US revenues were $468 million, up 8% year-over-year, while international was at $339 million, down 4%.

No layoffs announced (not yet) but as with others like Spotify, Twitter is putting a hold on hiring. The company had committed to increase headcount this year by at least 20% (alongside its CEO relocating to Africa temporarily and many other optimistic plans) but this is now being slowed down — to what extent, it did not say, but it did note that 2020 total expense growth would now be “considerably less” than the 20% it had projected.

More to come.

TechCrunch

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NEWS

OpenAI Introduces Fine-Tuning for GPT-4 and Enabling Customized AI Models

Published

3 weeks ago

August 21, 2024

Max

OpenAI Introduces Fine-Tuning for GPT-4 and Enabling Customized AI Models

OpenAI has today announced the release of fine-tuning capabilities for its flagship GPT-4 large language model, marking a significant milestone in the AI landscape. This new functionality empowers developers to create tailored versions of GPT-4 to suit specialized use cases, enhancing the model’s utility across various industries.

Fine-tuning has long been a desired feature for developers who require more control over AI behavior, and with this update, OpenAI delivers on that demand. The ability to fine-tune GPT-4 allows businesses and developers to refine the model’s responses to better align with specific requirements, whether for customer service, content generation, technical support, or other unique applications.

Why Fine-Tuning Matters

GPT-4 is a very flexible model that can handle many different tasks. However, some businesses and developers need more specialized AI that matches their specific language, style, and needs. Fine-tuning helps with this by letting them adjust GPT-4 using custom data. For example, companies can train a fine-tuned model to keep a consistent brand tone or focus on industry-specific language.

Fine-tuning also offers improvements in areas like response accuracy and context comprehension. For use cases where nuanced understanding or specialized knowledge is crucial, this can be a game-changer. Models can be taught to better grasp intricate details, improving their effectiveness in sectors such as legal analysis, medical advice, or technical writing.

Key Features of GPT-4 Fine-Tuning

The fine-tuning process leverages OpenAI’s established tools, but now it is optimized for GPT-4’s advanced architecture. Notable features include:

Enhanced Customization: Developers can precisely influence the model’s behavior and knowledge base.
Consistency in Output: Fine-tuned models can be made to maintain consistent formatting, tone, or responses, essential for professional applications.
Higher Efficiency: Compared to training models from scratch, fine-tuning GPT-4 allows organizations to deploy sophisticated AI with reduced time and computational cost.

Additionally, OpenAI has emphasized ease of use with this feature. The fine-tuning workflow is designed to be accessible even to teams with limited AI experience, reducing barriers to customization. For more advanced users, OpenAI provides granular control options to achieve highly specialized outputs.

Implications for the Future

The launch of fine-tuning capabilities for GPT-4 signals a broader shift toward more user-centric AI development. As businesses increasingly adopt AI, the demand for models that can cater to specific business needs, without compromising on performance, will continue to grow. OpenAI’s move positions GPT-4 as a flexible and adaptable tool that can be refined to deliver optimal value in any given scenario.

By offering fine-tuning, OpenAI not only enhances GPT-4’s appeal but also reinforces the model’s role as a leading AI solution across diverse sectors. From startups seeking to automate niche tasks to large enterprises looking to scale intelligent systems, GPT-4’s fine-tuning capability provides a powerful resource for driving innovation.

OpenAI announced that fine-tuning GPT-4o will cost $25 for every million tokens used during training. After the model is set up, it will cost $3.75 per million input tokens and $15 per million output tokens. To help developers get started, OpenAI is offering 1 million free training tokens per day for GPT-4o and 2 million free tokens per day for GPT-4o mini until September 23. This makes it easier for developers to try out the fine-tuning service.

As AI continues to evolve, OpenAI’s focus on customization and adaptability with GPT-4 represents a critical step in making advanced AI accessible, scalable, and more aligned with real-world applications. This new capability is expected to accelerate the adoption of AI across industries, creating a new wave of AI-driven solutions tailored to specific challenges and opportunities.

GOOGLE

This Week in Search News: Simple and Easy-to-Read Update

Published

2 months ago

June 30, 2024

Entireweb News Bot

This Week in Search News: Simple and Easy-to-Read Update

Here’s what happened in the world of Google and search engines this week:

1. Google’s June 2024 Spam Update

Google finished rolling out its June 2024 spam update over a period of seven days. This update aims to reduce spammy content in search results.

2. Changes to Google Search Interface

Google has removed the continuous scroll feature for search results. Instead, it’s back to the old system of pages.

3. New Features and Tests

Link Cards: Google is testing link cards at the top of AI-generated overviews.
Health Overviews: There are more AI-generated health overviews showing up in search results.
Local Panels: Google is testing AI overviews in local information panels.

4. Search Rankings and Quality

Improving Rankings: Google said it can improve its search ranking system but will only do so on a large scale.
Measuring Quality: Google’s Elizabeth Tucker shared how they measure search quality.

5. Advice for Content Creators

Brand Names in Reviews: Google advises not to avoid mentioning brand names in review content.
Fixing 404 Pages: Google explained when it’s important to fix 404 error pages.

6. New Search Features in Google Chrome

Google Chrome for mobile devices has added several new search features to enhance user experience.

7. New Tests and Features in Google Search

Credit Card Widget: Google is testing a new widget for credit card information in search results.
Sliding Search Results: When making a new search query, the results might slide to the right.

8. Bing’s New Feature

Bing is now using AI to write “People Also Ask” questions in search results.

9. Local Search Ranking Factors

Menu items and popular times might be factors that influence local search rankings on Google.

10. Google Ads Updates

Query Matching and Brand Controls: Google Ads updated its query matching and brand controls, and advertisers are happy with these changes.
Lead Credits: Google will automate lead credits for Local Service Ads. Google says this is a good change, but some advertisers are worried.
tROAS Insights Box: Google Ads is testing a new insights box for tROAS (Target Return on Ad Spend) in Performance Max and Standard Shopping campaigns.
WordPress Tag Code: There is a new conversion code for Google Ads on WordPress sites.

These updates highlight how Google and other search engines are continuously evolving to improve user experience and provide better advertising tools.

FACEBOOK

Facebook Faces Yet Another Outage: Platform Encounters Technical Issues Again

Published

6 months ago

March 20, 2024

Max

Uppdated: It seems that today’s issues with Facebook haven’t affected as many users as the last time. A smaller group of people appears to be impacted this time around, which is a relief compared to the larger incident before. Nevertheless, it’s still frustrating for those affected, and hopefully, the issues will be resolved soon by the Facebook team.

Facebook had another problem today (March 20, 2024). According to Downdetector, a website that shows when other websites are not working, many people had trouble using Facebook.

This isn’t the first time Facebook has had issues. Just a little while ago, there was another problem that stopped people from using the site. Today, when people tried to use Facebook, it didn’t work like it should. People couldn’t see their friends’ posts, and sometimes the website wouldn’t even load.

Downdetector, which watches out for problems on websites, showed that lots of people were having trouble with Facebook. People from all over the world said they couldn’t use the site, and they were not happy about it.

When websites like Facebook have problems, it affects a lot of people. It’s not just about not being able to see posts or chat with friends. It can also impact businesses that use Facebook to reach customers.

Since Facebook owns Messenger and Instagram, the problems with Facebook also meant that people had trouble using these apps. It made the situation even more frustrating for many users, who rely on these apps to stay connected with others.

During this recent problem, one thing is obvious: the internet is always changing, and even big websites like Facebook can have problems. While people wait for Facebook to fix the issue, it shows us how easily things online can go wrong. It’s a good reminder that we should have backup plans for staying connected online, just in case something like this happens again.