Twitter’s user growth has stalled despite beating Wall Street revenue and earnings per share predictions, according to the social network’s Q2 2017 earnings report.
Twitter reported having 328m monthly active users (MAUs) – exactly the same as it had in Q1 2017, though analysts expected it would around 4m new users. Despite this, 328m users still equates to a five per cent year-on-year (YoY) increase.
Meanwhile, its daily active users (DAUs) grew by 12 per cent YoY, something that Twitter seems keen to point out as a positive – yet it still won’t reveal the hard figures on the amount of DAUs it actually has.
“We're proud that the product improvements we're making continue to increase their overall contribution to Twitter's growth. MAU increased five per cent YoY and DAU increased 12 per YoY, marking the third consecutive quarter of double-digit growth,” said Jack Dorsey, Twitter's CEO. “We're strengthening our execution, which gives us confidence that our product improvements will continue to contribute to meaningful increases in DAU. We're also encouraged by the progress we're making executing against our top revenue generating priorities as we focus on making Twitter the best place to see and share what's happening, where you can see every side and perspective.”
On the financial side, Twitter had a quarterly revenue of $574m, a decrease of five per cent YoY but ahead of the $537m expected. Of this revenue, $489m came from advertising, an eight per cent fall though once again ahead the $458m estimate. Furthermore, its adjusted earnings per share sits at $0.12 versus the $0.05 expected.
The struggling social network also posted a net loss of $116m, up from the $107m it lost in the same period last year. All of this resulted in its shares opening 10 per cent lower on Thursday (27 June).