Twitter has just released financial data for the last quarter of 2018, just as Facebook and Snapchat have done in the last few days. The results of the social network are very good financially speaking, but at the user level they reflect a considerable and worrisome loss.
“Twitter will stop offering the active user data per month from the next quarter.”
In the fourth quarter of 2018 Twitter remained at 321 million active users per month. Those who connected to the social network at least once in the last 30 days are considered active.
The figure represents a significant decline in just three months, as the third quarter of the year had been closed with 326 million users. This loss of 5 million users in a single quarter also weighs the annual result. At the end of 2017 Twitter had 330 million users, so in a year 9 million active users have been lost.
The decline has taken place both in the United States and in other countries. According to Twitter, it is explained by three reasons: on the one hand, the changes in the product, which have meant that the number of notifications received by users is reduced. With fewer notifications received, fewer users “remember” to enter the social network.
On the other hand, Twitter indicates that the decisions taken by the company to “clean up” false accounts or that made inappropriate use of the platform have also caused this decline. The changes adopted by the company to adapt to the GDPR, the new regulations on data protection in the European Union, would also cause the downturn that has been experienced.
Twitter has also indicated that starting next quarter will no longer provide the number of active users per month. This will suppose to hide that information before possible descents, so that the alarm voice does not flood between the users. However, wanting to hide the figure is, by itself, cause for concern.
As Snapchat does, Twitter will only provide the number of daily active users. Twitter closes 2018 with 126 million daily active users. Note that Snapchat’s figure is 188 million.
On the other hand, the economic results for the fourth quarter are encouraging. In that period, Twitter obtained revenues of 909 million dollars, 24% more than a year ago and a net profit of 244 million dollars, surpassing analysts’ estimates.
Of the income, 87% (about 791 million dollars) was obtained through the commercialization of advertising spaces on the platform. In the mentioned quarter, advertising revenues grew 23% with respect to the same period of the previous year. The rest of the proceeds come from the sale of licenses to use data, which generated $ 117 million.