It looks like the much-discussed Trump bump is over for Twitter, with the company’s latest quarterly financial results flashing a number of warning lights.
Twitter now has 328 million monthly active users (MAUs), which is up 5% year-on-year, but there was no growth between the first and second quarters of this year. And in fact, Twitter’s MAUs actually fell in the US: down from 70 million in Q1 to 68 million in Q2.
There was also bad news on the revenues front, with Twitter’s quarterly revenue falling 5% year-on-year to $574m, including an 8% drop in advertising revenues to $489m. Twitter posted a net loss of $116m for the last quarter, although the company said that a $55m ‘cost-method impairment charge’ was part of that, thus masking its progress towards profitability.
The revenue decline marks a stark contrast to Facebook, which despite its size reported revenue growth of 45% earlier this week. As one analyst put it to CNBC: “You have zero user growth versus Facebook reporting 70 million new users. It’s not a recipe for a stock you want to buy…”