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Twitter Inc. (NYSE:TWTR) Can Emerging Markets Help the firm?

twitter inc (NYSE:TWTR)

Twitter Inc. is focused on growing its user base and the firm is now looking towards Indonesia to unlock growth. The Wall Street Journal reports that Twitter is forging ahead with plans to build its business in the country after it had said that it would open an office in Jakarta last year. There is a 250 million potential user market for Twitter in the country and its push there is in line with an earlier push by the firm to unlock growth in the markets of the Asia-Pacific region.

twitter inc (NYSE:TWTR)

Parminder Singh, managing director for Twitter in Southeast Asia, India, North Africa and the Middle East said that Twitter has set up a team that will build its business in the country. He also said that the firm is hiring at a rapid pace “across a spectrum of functions, we are staffed here to do business”.

Unlocking growth in Asia-Pacific

Twitter’s game plan to key into growth in the region came to limelight in June after the firm opened a new APAC headquarters in Singapore. The move was part of efforts to help Twitter have a strong presence outside the United States and Europe. The firm was setting up its APAC HQ to become a regional hub for the increase of social media use in the region. Twitter’s VP of Asia Pacific, Shailesh Rao after the opening of the APAQ HQ said “there still is enormous potential to show people the value of our platform, from Japan to India to Australia“.

In Q1 2015, Twitter’s revenue from international markets increased by 109% to $147M. The firm has seen the huge upside in the markets of Asia and it is keying into those markets. Rao also gave insights to the firm’s endgame saying, ”we’re capitalizing on this growth in 2015 by making strategic investments across the region”.

User growth to see life in international markets?

Twitter’s poor user growth has been a source of concern for investors and analysts who were still putting up with the poor financials from the firm. In the second quarter, the firm posted a small increase in users who uses it Web or mobile application from 302M users in Q1 to 304M users. The total daily active users increased from 308M in the Q1 to 316M in the second quarter. Interim CEO, Jack Dorsey says of the growth numbers “This is unacceptable and we’re not happy about it”.

The market is hopeful that Twitter will be to unlock growth in the Asia-Pacific so that it can leave up to its potentials. One of the Wall Street voices that has not given up on Twitter is SunTrust Analyst Robert Peck who thinks that Twitter can change its fortunes if it can boost stagnant growth and find a new CEO fast.

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Victor Alagbe is a seasoned business and finance writer with a specialty in writing about how to invest for the long-term in healthcare, pharmacology, energy and tech stocks. His long-term focus is on stocks that provide a nice mix of growth and income. For the short term, he passionately writes about trading stock options for the excitement and leverage that stock options offer.

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