HomeIndustryTwitter Shows 11 Percent Growth in User Base, Revenue Still Stagnant

Twitter Shows 11 Percent Growth in User Base, Revenue Still Stagnant

As part of its financial figures for the first quarter of 2017, Twitter has today reported an encouraging 11 percent growth in active user base that now puts the micro-blogging service at 328 million monthly active users.

In the latest earnings report, Twitter managed to smash any expectations out of the park as far as active user base growth or earnings per share (EPS) are concerned. It added more than 9 million more users during the last quarter and reported an EPS of $0.11, while analysts predicted a meager 2 million more users and only $0.01 EPS for the quarter.

The three most prominent figures from the earnings report are revenue, user base, and EPS. Studying all of them one by one, we get the complete picture of what Twitter has achieved Q1 2017: starting with Revenue, it was predicted that Twitter will report $512 million for last quarter, and it managed to exceed those expectations massively by reporting revenues of $548 million. While that figure still is some way short of $595 million of Q1 2016, it still is beyond what was thought achievable by Twitter during this period.

Next is EPS, and this is one of the three sections of the reporting where Twitter records its biggest victory over analysts:  expected to report only $0.01 EPS, Twitter came forward with $0.11 EPS. It is, of course, not the $0.15 of same period last year, but the road to recovery is slow and worn-out. Finally, as far as growth in active user base is concerned, projections put Twitter at 2 million added users during last quarter at best, but it was able to add more than 9 million users during the quarter. This number, more than others, points towards the fact that Twitter could be close to turning a corner.

The growth in active user base that puts the service at 328 million monthly active users is another sign that the changes of last year – continued this year – have delivered finally. Recently, Twitter made more changes to puts all 140 characters of a tweet at the disposal of the user. And if you ask the San Francisco-based company itself, it pins credit for user base growth on marketing, the changes made to the platform, and the biggest influence, we suspect, came from “organic trends” that may or may not be linked to the US Presidential Elections of 2016 and its results.


Danial Ali
Danial is a seasoned contributor that takes a particular interest in all things Apple since he jumped aboard the iPhone ecosystem. Hobbies: Gaming and reading


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