Despite exceeding revenue projections, Twitter monthly active user rates are down this quarter.
Twitter reported second-quarter earnings before the bell on Friday:
- Earnings per share: 17 cents vs. 17 cents, according to a Thomson Reuters consensus estimate
- Revenue: $711 million vs. $696.2 million, according to a Thomson Reuters consensus estimate
- Monthly active users (MAUs): 335 million vs. 338.5 million, according to StreetAccount and FactSet estimate
Shares were down as much as 18 percent when the news broke.
Last quarter, Twitter reported 336 million active users. The platform blamed not moving to paid SMS carrier relationships, making changes to improve the “health” of the platform and some impact from GDPR. Daily active users grew 11 percent, but the company did not break out the exact number.
Twitter revenue grew 24 percent year-over-year, with strong advertising gains.
There’s more scrutiny on the company given the Russian interference during the 2016 elections. Twitter has since enacted more rigorous political ad standards and will release a “transparency center” to show all advertisements running on the platform. The company also recently purged fake accounts, but those changes occurred after the close of the second quarter so its unlikely to affect MAUs this time.
This story is developing. Check back for updates.