Twitter has been overstating the size of its user base since 2014

Phillip Butler
October 28, 2017

Now, the company claims that it has 330 million monthly active users, 69 million of which are based in the USA, up from 68 million in the last quarter. "We're proud that the improvements we're making to the product continue to bring people back to Twitter on a daily basis".

In the same release, Twitter CFO Ned Segal said the company expects to become profitable in the fourth quarter, with expected earnings before interest, tax, depreciation and amortization (EBITDA) to reach between $220 million and $240 million, against capital expenditures of $110 million or less and stock-based compensation expenses between $90 and $100 million. In a letter, written to its shareholders, Twitter wrote that since the end of the year 2014, it had been counting users of apps that used Digits, Twitter's now defunct developer toolkit which was launched in October 2014, in its counting of monthly users.

Looking toward the future, Twitter believes that its fourth-quarter will, if it outperforms its internal targets, it will make a profit.

Twitter reported a net loss of $21 million and adjusted earnings per share of 10 cents. Average daily active users (DAUs) jumped 14% year-over-year, ramping up sequentially from Q2's 12% year-over-year growth rate. The company has seen monthly active user figures increase, arresting the slide that it had to report across the summer.

Twitter added 4m users in Q3 2017 from the previous quarter, taking its monthly active user (MAU) base to 330m and representing a four per cent year-on-year (YoY) increase.

"This quarter we made progress in three key areas of our business: we grew our audience and engagement, made progress on a return to revenue growth, and achieved record profitability", Twitter CEO Jack Dorsey said in a statement. As a result, it lowered previously reported user numbers by 1 million for the fourth quarter of 2016 and by 2 million for the first two quarters of 2017.

Revenues fell 4.2% from a year ago to $590 million, but also beat analysts' view for $586.22 million.

The earnings report also addressed Twitter's ongoing problems with harassment.

Other reports by Ligue1talk

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