Twitter dropped users in the past three months, the company announced on Wednesday. The announcement sent shares down, as reported by The Guardian.
Millions of Brits paying shock costs as credit card interest rates hit the highest since 1998.
The co-founder Jack Dorsey returned to lead the company in January of this year. He has shaken management to the base, sacked staff and made a number of modifications to the service. However, his plans aren’t going well.
The growth of Twitter’s monthly active users has been slowing, and then slowed, and finally appears to have stopped completely. The user base of the service is growing by 9 percent in comparison to the previous quarter, it’s level at 332 million.
Discounting “SMS Fast Followers,” who utilize the service via messaging platforms and typically reside in emerging markets Twitter’s users declined in the very first instance in its history, dropping from 307 million users to 307 million in the three months preceding the 31st of December.
The price of Twitter’s shares fell by 13 percent after hours of trading, before rebounding. The stock had already sunk to the all-time low earlier in the week.
In its letter to shareholders Twitter stated that it believed the decline was temporary situation.
Dorsey stated that the users that were lost “were not high-quality” and the company will be focusing on daily active users during the earnings call of the company.
Twitter is still holding $3.5bn of cash in its bank.
The company released a specific strategy to get back on track but, after years of emphasising its users over its revenue growth and growth of advertisers the market did not seem to be interested. The company’s stock price went up when the market had closed and the social network’s figures were announced with a loss of over 11 percent prior to the rebound.
It’s not been a great an season in the world of Twitter but it’s barely February. major campaign of the company around this year’s Super Bowl, which reliably generates buzz about methods marketers attempt to get heard during the event, fizzled. The game’s less exciting nature prompted users to tweet 16.1m tweets, which was one third less than the previous year’s 25.1m.
Emarketer says that in the coming year, Twitter is expected to earn $2.95bn in total advertising revenue across the globe, representing 9 percent of all ads across social networks across the world.
Analysts didn’t rule Twitter out. “While we recognize heightened risks, with the stock’s recent declines we are more positive about Twitter’s potential upside than we have been in some time,” analyst Brian Wieser wrote, though the target price of Twitter by a significant amount in the same note to investors.