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Heard This One Before? Twitter's Users Grow, Revenue Falters

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Heard This One Before? Twitter's Users Grow, Revenue Falters

Twitter Inc (NYSE: TWTR)'s first quarter earnings report was compelling enough for investors as the stock gained nearly 8 percent.

According to Statista, part of the positive aspects of Twitter's report could be attributed to Wall Street's "admittedly low" expectations but on Twitter's end, the company did manage to show user growth. Specifically, monthly active users (MAU) on the social media platform rose 6 percent from the same quarter a year ago to 328 million.

Statista noted a more encouraging aspect of the report is Twitter's audience growth in terms of both MAU and daily active users (DAU) accelerated for the fourth consecutive quarter.

The Bad

Statista pointed some of the more troubling aspects of Twitter's report. While Twitter appears to be working on improving its user engagement and overall experience for users, the fact remains the top-and-bottom-lines are equally, if not more important than MAU and DAU growth.

At the end of the day, Twitter didn't translate its user growth into dollars as ad revenue fell 11 percent year-over-year. In fact, the first quarter of 2017 marks the first time ever as a public company that ad revenues fell on a year-over-year basis.

Twitter also cautioned investors to expect revenue growth to lag audience growth throughout this year although this could improve in the longer-term.

Here is Statista's chart that shows Twitter's revenue and user growth:

Infographic: Twitter's User Growth Picks Up Pace as Revenue Stutters | Statista You will find more statistics at Statista

See Also:

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