After Facebook’s stock-plunge last week, Twitter experienced a similarly-bumpy response to its latest quarterly financial results, which saw the company’s shares drop by 21%.
The cause: a slight fall in the number of monthly active Twitter users, from 336 million in the first quarter of this year to 335 million in the second.
Twitter said its focus on the ‘health’ of its platform (in terms of spam, bots and fake accounts) was one of the reasons for the drop, alongside compliance with the EU’s GDPR legislation, and decisions not to renew some of its contracts with telcos to deliver tweets via text-message. Cue the market wobble.
Twitter, as you might expect, argues that monthly active users (MAUs) aren’t the only metric by which it should be judged. The company’s Q2 revenues grew by 24% year-on-year to $711m; it recorded a $100m net profit for the quarter – its third profitable quarter in a row – and said that its daily active users (total) grew by 11% year-on-year (without saying what that number actually was).