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The growth of users of the company is a problem after all.

Twitter didn’t add new users in the second quarter, a disappointing follow up of what had been a promising start to 2017.

Twitter reported earnings on Thursday morning, claiming 328 million total users – the same number it reported after the first quarter. Analysts had expected the company to add about four million new users last quarter.

Additions / Net Losses of active monthly Twitter users.

Net profit or loss from quarter to quarter of Twitter in its total active monthly users.

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Credits: Twitter earning reports

Twitter beat Wall Street’s earnings expectations, with earnings of 12 cents a share in revenue of $ 574 million. Wall Street was looking for just $ 537 million in revenue.

Twitter revenue

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Daily active users of Twitter also grew 12 percent compared to the same period last year, an indicator that Twitter is likely to post, as the company says it represents a commitment. But Twitter does not share the number of active daily users it actually has, which makes its year-to-year growth hard to appreciate.

The piece of user growth was the key. The decline in Twitter revenue has been attributed to the fact that the company had negligible user growth for almost two full years – revenues were simply catching up.

But after adding a staggering nine million new users last quarter, some hoped it was a sign that Twitter’s business growth would eventually continue. The addition of zero new users, however, is not what investors were looking for.

Twitter shares fell nearly 6% in pre-market trading. We are monitoring the company’s revenues and will update with anything else we find.

 

Source: recode

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Rob de Digitalegia
Rob de Digitalegia
CEO & Founder Inbound Marketing Consultant

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