- General
- July 27, 2018
- 4 minutes read
Twitter primes on fixing platform over user growth as shares plunge following user base decline
image credit : Flickr/ JD Lasica Social networking company Twitter just reported its Q2 results which although topped analyst…
image credit : Flickr/ JD Lasica
Social networking company Twitter just reported its Q2 results which although topped analyst estimates with revenues showed a dip in its user base as the company has prioritized fixing its platform which saw it take down millions of accounts as it aims to make its platform more suitable and desirable for users.
Twitter reported $711 million in revenue for the quarter topping analyst estimates of around $696 million while also disclosing 335 million users as opposed to analyst estimates of 338.5 million.
Twitter’s shares went down as much as 18% following the Q2 report as investors spark concerns over usage numbers of its platform.
Twitter reported $100 million in net income for the quarter marking its third profitable quarter since its start and also under the leadership of CEO Jack Dorsey who runs the company along with major payments company Square.
Quoting Dorsey “Our second quarter results reflect the work we’re doing to ensure more people get value from Twitter every day,”. “We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviors that distort and distract from the public conversation.”
Twitter’s daily active usage grew 11% over last year indicating a more in-depth adoption by its users as the company fixes up its platform which was known to have swath of several fake and bot accounts engaging in spammy activities and also spreading mis-information.
Twitter was also recently accused of “Shadow Banning” Republicans in its search results which prompted a comment by the always tweeting U.S. President Donald Trump, Twitter has grossly denied doing this and it seems very well the supposed ‘Shadow Banning’ comes as a result of certain changes made in order to fix up its platform for users.
“We are pleased with our performance in the second quarter in DAU growth and delivering for advertisers,” said Ned Segal, Twitter’s CFO. “We’re maintaining profitability while we make investments in the business, achieving strong revenue growth and introducing product updates that make Twitter both healthier and easier to use. Looking ahead, we remain optimistic about our ability to execute on our priorities and deliver value for advertisers and shareholders.”
