Twitter Drops 12%: Why Isn't 'Top of the Funnel' Growing? Street Asks
- Author: Darren Santiago Jul 28, 2017,
Jul 28, 2017, 0:09
I have no idea how this is possible for such a popular social media platform, but Twitter did not, reportedly, gain a single user in three months' time: they now claim 328 million users, a figure that hasn't changed since Q1.
Revenues fell 4.7% from past year to $574 million, also easily topping analysts' view for $536.63 million.
Advertising sales dipped by 8 per cent to $489 million as revenue fell for only the second time since Twitter's stock... Twitter's daily active users also grew by 12 per cent over the same time past year, a metric Twitter says represents engagement.
For its part, Twitter has encouraged investors to focus on other areas for user engagement.
"Until Twitter can return to revenue growth, we expect advertisers to devote their ad budgets to platforms with better targeting, reach, and scale", Wedbush analyst Michael Pachter wrote in a pre-earnings note. On a yearly basis, the monthly active user base saw a 5% growth.
Excluding items, the company earned 8 cents per share.
Israel Attacks Palestinians at Al Aqsa Mosque, Injuring Dozens
Ynet reported that senior Jordanian and Israeli officials are discussing ways to find a solution to tensions on the Temple Mount. They argue that abiding by the new security measures will reinforce Israel's questioned sovereignty claim over the area.
"We're strengthening our execution, which gives us confidence that our product improvements will continue to contribute to meaningful increases in daily active usage".
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now. and Twitter wasn't one of them! For the third quarter, it projects adjusted EBITDA of $130 million to $150 million with a margin of 25% to 26%.
Despite its appeal among celebrities and public figures, Twitter has struggled to sustain its closely watched user growth even as it invested in features and live content to help draw viewers and boost user engagement. This quarter, the very Twitter move of its users not growing and its advertising business stalling happened once again and shed more doubt on the company's future.
Shares in Twitter were down almost 9 percent to $17.97 in pre-market trading, as investors reacted to the flat user growth.
On the financial side, Twitter had a quarterly revenue of $574m, a decrease of five per cent YoY but ahead of the $537m expected.