Much like its rivals, Twitter (TWTR +0.00%) is far more successful at monetizing its domestic users than international tweeters. Facebook (FB +1.28%) and LinkedIn (LNKD +0.00%) also generate the majority of their revenue in the U.S., even though most users are abroad.
For Twitter, 23% of its monthly active users, or MAUs, are located in the U.S., but 75% of revenue is generated stateside. A whopping 34% of LinkedIn's registered members are domestic, and 62% of revenue comes from within the United States. Just 17% of Facebook's MAUs are in North America, yet 48% of revenue comes from this geographical segment. As you can see, all three of the social-media giants face the same challenges with international monetization.
As Twitter looks internationally, it will grow its sales force instead of relying on third-party ad resellers. The company expects greater MAU growth in countries such as France, Japan, and Russia. As monetization improves, Twitter can grow its top line without necessarily having to add more MAUs.
In this segment of Tech Teardown, Erin Kennedy discusses Twitter's big debut with Evan Niu, CFA, our tech and telecom bureau chief.
