Regurgitation

27 July 2018 By Robert Cyran Follow @rob_cyran

The social network’s efforts to reduce spam, fake users and toxicity shrank active monthly users. Investors fled as well. That leaves both the platform and valuation more salubrious. Healthy returns will now depend on finding growth.

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Twitter on July 27 reported 24 percent year-on-year revenue growth for the second quarter of 2018, but said its monthly active user numbers had fallen, and could decline in “mid-single-digit millions” by September.

Quarterly revenue of $711 million compared with analyst estimates of $692 million, compiled by Eikon. Adjusted earnings of $134 million were more than double the same period in 2017, and roughly in line with expectations.

The social network attributed the 1 million decline in monthly active users, to 335 million, to European privacy rules that kicked in on May 25, and to attempts to “prioritize the health of the platform.”

Daily active users increased by 11 percent compared with the same period a year earlier, an improvement on the previous quarter’s 10 percent, Twitter said, without disclosing the actual number of daily users.

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