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Twitter Fails to Increase the Overall Active Users Base

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Published on : Feb 09, 2015

A net loss worth 82 million pounds was reported by Twitter during the last quarter. This development beat the expectations and the predictions of the analysts. The growth of revenue in fact was quite swift and rapid since it rose by 95% reaching a value worth 479 million pounds between October and December. Monthly, the total number of active users came to about 288 million, which marked a 20% increase from the previous year. However, the previous quarter’s growth was significantly sluggish. 

This was because Twitter could only make an addition of no more than 4 million users over the previous quarter. Twitter, however stated, that due to integration of several applications it ended up losing almost 4 million users over this period. 

Unfortunately for investors in the U.S., the growth of users has become rather slow paced. Similar to the earlier quarter, according to the company, it had close to 63 million active users on a monthly basis, in the U.S. market for advertising that is quite lucrative. Also, till now the sluggish user statistics have not acted like major deterrents for advertisers operating in the U.S. market. 

Twitter’s revenue from advertising had risen by 97% from the previous year, which resulted in revenue worth US$432 million during the 4th quarter. During a recently held conference, it was finally confirmed that Google and Twitter had entered into a business deal; however, further details were not disclosed. As per reliable sources, it was understood that the main rationale behind this business deal was Google’s attempt at ensuring that the visibility of Twitter messages be increased.