Twitter is making more money with fewer users

Twitter is making more money with fewer users, helping offset investors' concerns about ongoing efforts to p...

Posted: Oct 25, 2018 2:34 PM
Updated: Oct 25, 2018 2:34 PM

Twitter is making more money with fewer users, helping offset investors' concerns about ongoing efforts to purge bad actors and clean up the platform.

Twitter on Thursday posted stronger than expected sales and profits for the third quarter despite a continued decline in the number of monthly active users.

Business, economy and trade

Companies

Company activities and management

Company earnings

Financial performance and reports

Financial results

Twitter

The social network had 326 million monthly active users for the three months ending in September, a significant drop from 335 million in the previous quarter and 330 million in the same period a year earlier. In the United States, the number of monthly active users fell to 67 million from 68 million in the prior quarter.

Twitter chalked up the user decline in part to its efforts to comply with a new European data privacy law as well as "decisions we have made to prioritize the health of the platform." Worse still: the company expects monthly users to fall again in the upcoming quarter.

But the number of people who use the platform every day continues to grow. Daily active users increased 9% from a year ago, though Twitter does not break out the actual number of these users.

"This quarter's strong results prove we can prioritize the long-term health of Twitter while growing the number of people who participate in public conversation," Jack Dorsey, Twitter's CEO and cofounder, said in a statement.

On a conference call with analysts Thursday, Dorsey highlighted Twitter's traction reducing "suspicious" account signups by 20% from the prior quarter. He credited "new techniques" to better identify spammy and malicious accounts.

Although Dorsey admitted these efforts to make Twitter less toxic may have "short-term implications" for user numbers, he stressed that he expects the company's health initiatives will be key to the "long-term growth of the platform."

That pitch appears to be working with advertisers. Twitter's sales hit $758 million for the quarter, a nearly 30% increase from a year prior, on the strength of its ad sales business. Twitter also continued its streak of profitable quarters, posting a net income of $106 million for the three month period.

The stock jumped more than 10% in pre-market trading Thursday following the earnings report.

In recent months, Twitter has focused on safeguarding the service amid scrutiny of its role in spreading fake news and election meddling as well as the broader data privacy backlash hitting the tech industry. It cracked down on fake accounts, purging suspicious accounts from users' follower metrics and removed 143,000 apps between April and June for violating its policies.

Like Facebook, Twitter is working to comply with the General Data Protection Regulation, which took effect in Europe earlier this year. The company said in April that monthly active user growth could be "negatively impacted" by the new rules.

New York Coronavirus Cases

County data is updated nightly.

Confirmed Cases: 448052

Reported Deaths: 33085
CountyConfirmedDeaths
Queens714747239
Kings667377314
Bronx524684940
Nassau460522201
Suffolk459562011
Westchester377181454
New York329383178
Richmond156891085
Rockland14747675
Orange11760498
Erie10873689
Monroe5857289
Dutchess5050153
Onondaga4185205
Albany2979134
Oneida2369123
Ulster223595
Niagara1707101
Putnam156963
Sullivan156848
Broome145069
Schenectady137448
Saratoga98517
Rensselaer89542
Columbia58037
Chautauqua5359
Madison48417
Ontario45435
Oswego4183
Tompkins3900
Warren35433
Steuben34242
Fulton33124
Otsego3245
Orleans32254
Greene31918
Herkimer31810
St. Lawrence3144
Genesee3095
Wayne3065
Chemung3053
Washington28714
Cattaraugus2496
Chenango2487
Tioga22225
Montgomery2194
Livingston2018
Cayuga1952
Jefferson1600
Essex1570
Clinton1545
Cortland1500
Wyoming1315
Delaware1294
Seneca1053
Allegany951
Schoharie830
Franklin640
Yates627
Lewis500
Schuyler370
Hamilton140
Unassigned019
Utica
Few Clouds
38° wxIcon
Hi: 62° Lo: 35°
Feels Like: 38°
Oneonta
Clear
32° wxIcon
Hi: 58° Lo: 32°
Feels Like: 32°
Herkimer
Few Clouds
38° wxIcon
Hi: 61° Lo: 35°
Feels Like: 38°
Thendara
Scattered Clouds
36° wxIcon
Hi: 56° Lo: 31°
Feels Like: 36°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
Saluting Those Who Are Proud 2 Serve
WKTV Golf Card - Under 150 left