Twitter fails to add new users despite Trump attention
Social media site struggling to add new users or make a profit
Tired of Twitter? Sick of tweetstorms? You're not alone.
Twitter's latest round of results show its user numbers have stalled at 328 million from last quarter, after posting gains the previous three month period. Its ad revenue slid by $46 million over the quarter, with losses of $116 million. The results drove its share prices down 14%.
CEO Jack Dorsey preferred to frame the user numbers differently, with year-on-year comparisons showing growth. "Monthly active usage (MAU) increased 5% year-over-year and daily active usage (DAU) increased 12% year-over-year, marking the third consecutive quarter of double digit growth," he said in a statement.
Ad sales couldn't be spun with an annual outlook, with revenue down 5% year-on-year to $574 million.
The stalling user base comes as Twitter has become US President Donald Trump's de facto personal newswire, with the president tweeting everything from accusations and denials to proposed policy changes to military service.
"If you really can't accelerate [monthly active users] interest given the daily tweets from POTUS, not sure when you will," Michael Nathanson, senior research analyst of MoffettNathanson Research, told Reuters.
Indeed, Twitter's average monthly active users fell over the last quarter by two million in the US to 68 million, with international gains making up the difference.
Twitter said that its new live-streaming video feature would help boost users and revenue in the future. "We're strengthening our execution, which gives us confidence that our product improvements will continue to contribute to meaningful increases in daily active usage," Dorsey said. "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."