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Twitter loses 1 million users in Q2, stock plummets

Recently, Twitter has started to crack down on spam and inactive accounts. Twitter reported a drop of 1 million users in the second quarter of 2018 with monthly active user count going down from 336 million in the last quarter to 335 million. Still, Twitter continues their efforts to eliminate fake accounts and reduce harassment on the platform. The company also said that its monthly users will continue to decline even in the third quarter. Twitter also mentioned in investor letter – “Based on our current level of visibility, we expect the decline to be mid-single-digit millions of (monthly active users)”.

Twitter is planning to grow its headcount, targeting an increase of 10%-15% by year end, which means that operating expenses will increase in the second half of 2018. Twitter reported $711 million in revenue – an increase of 24% year-over-year. The advertising revenue totaled $601 million – an increase of 23% year-over-year.

Twitter Chief Jack Dorsey said – “Twitter prioritizes the long-term health of the platform over short-term metrics. We believe that Twitter’s value as a daily service is enhanced when the conversation on the platform is healthier and people feel safe freely expressing themselves.”

The social network’s Chief Financial Officer Ned Segal mentioned – “Advertisers embrace the work we are doing. They recognize that a healthier twitter, as opposed to a disclosed metric, is what’s going to deliver a great result for them.”

The company recently acquired Smyte. This company specializes in spam prevention, safety, and security. Jack Dorsey also said –

“We are continuing to make it easier for people to find and follow breaking news and events, and have introduced machine learning algorithms that organize the conversation around events.”

In December, 2017 Twitter identified and challenged more than 9 million potentially spam or automated accounts per week.  Twitter also mentioned that – “The new protections we’ve developed have already helped us prevent more than 50,000 spammy signups per day in June.”

Chief Financial Officer, Ned Segal  said – “Looking ahead, we remain optimistic about our ability to execute on our priorities and deliver value for advertisers and shareholders.”

According to Twitter’s report – the number of daily active users grew 11% year-over-year in Q2, but Twitter did not give an exact number of current DAUs.

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