Twitter Added Zero Users Last Quarter

Social networking site Twitter, on Thursday, reported a 5% year-on-year increase in average monthly users to 328 million, unchanged from the previous quarter.

Twitter saw a minor growth in its global monthly active user base to 260 million from 259 million in the previous quarter but was offset by a decline in its USA monthly active user base to 68 million from 70 million in the previous quarter.

Twitter failed to add any users on a monthly basis in the second quarter, compared with the first quarter, amid fierce competition from Facebook and Snap Inc's fast-growing messaging app Snapchat.

Daily active users, toward which management has recently been trying to shift investor attention, were up 12% year over year. However, the quarterly GAAP net loss reported was $116 million, representing a GAAP diluted EPS of 16 cents.

Overall, Twitter just isn't growing as much as investors would like to see. Analysts had projected $568 million.

I am by nature a contrarian, so always tend to root for the underdog, and for a while it looked as if Twitter may be finally getting it right.

Additionally, accounts with action taken against them for abusive content have led to 25-percent less abuse reports, the company said.

An exodus of American users and a drop in second quarter advertising sales prompted a sharp sell-off in Twitter this morning that sent shares down by 13 per cent.

Twitter chief executive Jack Dorsey said: "We're strengthening our execution, which gives us confidence that our product improvements will continue to contribute to meaningful increases in daily active usage". "It's not a recipe for a stock you want to buy".

Still, Twitter isn't being to open about those DAUs, and instead doing the Very Tech Move of telling us the growth rate and giving us a chart without a Y axis when talking about its DAUs.

Despite its appeal among celebrities and public figures, Twitter has struggled to sustain its closely watched user growth even as it invests in features and live content to help draw viewers and boost user engagement.

The company reported as well a wider net loss for the quarter and lower revenue.

Shares in Twitter were down almost 9 percent to $17.97 in pre-market trading, as investors reacted to the flat user growth. Revenue was $573.9 million, down from $602 million in the year-earlier period and above the FactSet consensus of $537.5 million.

  • Anthony Vega