Twitter posted net income of $182 million in Q4, down 18%, as operating costs jumped 35% with an increase in hiring and investment in infrastructure and marketing spending. That contributed to a historic drop in Meta’s market capitalization. Twitter’s indication that Apple’s privacy changes are causing minimal disruption stands in contrast to the warning from Meta (Facebook’s parent company), which said it anticipates a bigger impact on Q1 revenue growth from the iOS changes.
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In response, the company has attempted to change the narrative, focusing instead on its large number of non-logged-in visitors, who come to the site to passively browse the feeds of celebrities, find out about news events and, Twitter hopes, use products such as news service Moments.Click here to sign up for Variety‘s free Strictly Business newsletter covering earnings, financial and investment news, and more. Twitter has been battered in the stock market for its stagnating user figures, which have officially hovered around 300m for the past year, disappointing investors who hoped that the company would someday grow to a Facebook-toppling, billion-plus members. It has yet to respond.īyrne Hobart, the lead internet analyst at 7Park, said: “There’s a core set of Twitter users who remain passionate about the product, but Twitter’s efforts to grow their audience – through apps like Vine and Periscope, and through new features like Moments – have largely fallen flat.” We’ve asked Twitter whether any, or none, of these interpretations are correct.
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It could also be that 7Park’s data is less than representative, as it is dependent on the demographic of people who will agree to share information about their app choices in exchange for free data-usage apps. These users would not show up in 7Park’s data, which is drawn from a panel of mobile users who have agreed to share app usage data.Īnother possibility, which bodes less well for Twitter, is that the growth in Twitter’s monthly active users comes, not from a sizeable increase in real people logging into twitter, but from an increase in bots and other automated accounts.
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One is that Twitter’s growth in monthly active users could have come from real users who have declined to install the mobile app. There are a number of potential explanations for the discrepancy. In April 2014, Twitter reported 255m monthly active users, while in its most recent quarterly results, in September 2015, it reported 320m users.
It also, however, says that 79% of its accounts are outside the US.Īccording to the company’s own figures, its count of monthly active users has risen over the period that 7Park records a decline. Twitter itself reports that 80% of its active users are on mobile, which suggests the mobile decline could be broadly representative of the company’s overall usage. The situation is just as bad when worldwide users are taken into account, with Twitter’s penetration falling from 30% to just over 22%. The company’s weekly active users, the number who open the app each week, has fallen too, from 15% to 10.5% for Twitter and 1.7% to 0.8% for Vine.
Today, that has fallen to 25% and 2.9% respectively. In that month, Twitter was installed on 36.1% of US mobile devices, according to 7Park, while Vine was installed on 5%. 7Park says that Twitter’s second social network, Vine, has also suffered falls, declining to less than three-fifths of its April 2014 install base.
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