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Twitter Has Miscalculated User Growth For YEARS
28 October 2017, 01:07 | Hattie Nash
Illustration by Alex Castro The Verge
Worryingly for the company, its USA advertising revenues fell 11% compared to the same period previous year, although this was more than offset by booming worldwide advertising advertising revenues, which grew by 6%.
Earnings (adjusted): $0.10 a share versus $0.05 expected.
Twitter reported third-quarter revenue of $590 million, down 4% from $616m a year earlier. It now claims to have 330 million active users - meaning an uptick of 4 million rather than 2 million.
Twitter has stepped up efforts to boost its user base and engagement, notably with video partnerships, as part of its turnaround efforts.
Twitter said the readjustment does not impact its daily average user counts, and added that due to its "data retention policies" it could not "reconcile periods prior to the fourth quarter of 2016".
"We discovered that since the fourth quarter of 2014 we had included users of certain third-party applications as Twitter MAUs that should not have been considered MAUs", Twitter said in a regulatory filing Thursday.
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Another reason Wall Street is happy? The company admitted in an appendix to the earnings report that it had accidentally overstated its monthly active user count in every quarter since the end of 2014. These third-party applications used Digits, a software development kit of our now-divested Fabric platform, that allowed third-party applications to send authentication messages via SMS through our systems, which did not relate to activity on the Twitter platform.
It now says the issue was first there in the fourth quarter of 2016, and has made adjustments for it and the following quarters.
Revenues fell 4.2% from past year to $590 million, but also beat analysts' view for $586.22 million.
Twitter has also been criticised for not taking enough efforts to stop abuse and harassment on the platform.
Twitter has introduced several features in hopes of attracting more users and improving the overall experience. That will see the burgeoning company report a positive income for the first time, and may prove to investors and the wider world that Jack Dorsey's plan to revive Twitter is worth persisting with.
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