Twitter Plunges After US Monthly Users Drop; Ad Revenues Tumble

There was some good news and a lot of bad news in the just released Twitter results.

First the good news: the company reported Q2 Revenue and EPS of $573.9MM and $0.08, beating already depressed expectations of $537.2MM and $0.05.

That was about it for the good news. Now the bad: first, the company missed on total Monthly Active Users, which in Q2 were unchanged sequentially at 328MM, below the 332 expected. Worse, while US-based users rose by 4% Y/Y, they actually declined sequentially from 70 million to 68 million, confirming that the company's growth in the most profitable market is not only over, it has now reversed.

Commenting on the drop, Bloomberg's Jing Cao said that "it’s possible that political fatigue negatively impacted user numbers. Twitter doesn’t mention politics in the shareholder letter but does attribute MAU growth to product improvements, offset by "lower seasonal benefits and other factors."

Whatever the reason, the impact on the top line was profound as total revenue decline 5% from a year ago to $574 million, as growth in ad and licensing sales was not nearly enough to offset the drop in advertising revenue.

Worse, ad revenue in the US at $269 million dropped 14% Y/Y, and was the lowest in over. Elsewhere it wasn't better with global ad revenue sliding 8% and even international declined by 1%.

There was a glimmer of hope in the company's EBITDA line which rose 2% Y/Y to $178 million, above the $124.5 million expected, although the company warned it would drop substantially in Q3 to a range of $130-$150 million.

Finally, the market reaction was brutal: having pushed the stock higher for the past 3 weeks - for reasons unknown - TWTR tumbled on the report, sliding as much as 7% which, if the company's "growth" trend persists, will only accelerate in the coming months.


MagicHandPuppet FreeShitter Thu, 07/27/2017 - 07:36 Permalink

He could use any website or any up and coming social media site.  The MSM would (continue to) try to crucify him for doing it... meanwhile, his posts would singlehandedly put that site into the big leagues.The thing I like about his tweets is his ability to troll his ememies in a way that really gets under their skin - and he's able to do it while bypassing the most dangerous enemy of the people: Main stream media.

In reply to by FreeShitter

spastic_colon StackShinyStuff Thu, 07/27/2017 - 08:40 Permalink

i wish POTUS would announce he uses FB so it could plunge too.........they are being saved as a psyop and allowed to use completely fake metrics.-FACEBOOK CFO-DESKTOP AD REVENUE GROWTH RATES WILL SLOW IN SECOND HALF OF 2017 WHEN WE BEGIN TO LAP EFFORTS TO LIMIT IMPACT OF AD BLOCKERS- CONF CALLWhy would you need to fight ad blockers if users were finding the ads "useful"????

In reply to by StackShinyStuff

historian40 MagicHandPuppet Thu, 07/27/2017 - 08:59 Permalink

An even more dangerous enemy of the people is the government indoctrination centers(schools), as it destroys critical thinking skills and sets them up for a lifetime of believing bullshit.  Then they have no discernment when it comes to determining what is truth and a lie, and it makes them perfect victims of the corporate propaganda.  The MSM is obvious in their fake news, and anyone that can read should be able to pick out the words and phrases that reveal what is being said is rumor.

In reply to by MagicHandPuppet

NoWayJose Thu, 07/27/2017 - 07:28 Permalink

Twitter has single handidly gotten more people fired, more people embarrassed, more people kicked off Olympic teams, more politicians un-elected, and caused more divorces than anything else.

Spur of the moment thoughts can be dangerous!

Bill of Rights Thu, 07/27/2017 - 07:29 Permalink

And hopefully we will get lots more tweets like this one that he posted early Wednesday afternoon: “IN AMERICA WE DON’T WORSHIP GOVERNMENT – WE WORSHIP GOD!”

IN AMERICA WE DON'T WORSHIP GOVERNMENT – WE WORSHIP GOD!— Donald J. Trump (@realDonaldTrump) July 26, 2017

At the end of the tweet there was a link to a video on Instagram that contained footage of remarks Trump made about his faith during a large rally.

Dode415 Bill of Rights Thu, 07/27/2017 - 07:40 Permalink

Trump worships the money god - he's only gone this route to get the votes of gullible Christian fundamentalists who think a guy who's been married 3 times, boasts about sexual assault and rips working people off by not paying them for work they've done for him is actually a Christian. At least when he's binned they'll get pence who is actually a man with Christian beliefs 

In reply to by Bill of Rights

tmosley historian40 Thu, 07/27/2017 - 09:40 Permalink

You SHOULD worship money. Money is the single most important thing in life after life itself. It is a claim on human labor. To value money is to value human labor. To hoard money is to gift your labor to the world while not asking anything in return.If people would actually THINK a little more about these things, the world could have become a much better place much sooner.

In reply to by historian40

fattail Thu, 07/27/2017 - 07:30 Permalink

I love how all of these technical geniuses do nothing but sell ads.  At least with bezos you get something.  I saw something this week that said the Millenials are the least likely of people to respond to ads.

NotBuyingIt fattail Thu, 07/27/2017 - 10:28 Permalink

Bald Fuck Bezos sells NOTHING except shitty services like Prime. The little bald fuckshow only provides a platform for transactions to occur. It's the sellers and vendors that have made Bezos- yet as time goes on, the  little cunt figures out new ways to screw over the merchants! He and his shitty site can go to hell. I'm totally done with him in every way. Won't even click on a WaPo link anymore, much LESS share them on socials.

In reply to by fattail

Arrest Hillary Thu, 07/27/2017 - 07:32 Permalink

This is the most communicative President .... since Ronald Wilson Reagan .... he's a hoot to boot .... don't parade your pussy .... man up and enjoy a truly revolutionary leader at work ?

847328_3527 Arrest Hillary Thu, 07/27/2017 - 07:42 Permalink

The media, Congress, cia, etc have a hard time beinig exposed by a non-partisan president whom they still can't figure out despite 63 million + Americans supporting the guy. Shows how disconnected the media and DC and the two coasts are from 90% of Americans. The MSM polls show his apporval rating dipping to 355 but Hillary is even lower. While, other polls show his approval rating at over 55% but the media ignores those polls.

In reply to by Arrest Hillary

froze25 (not verified) Arrest Hillary Thu, 07/27/2017 - 13:00 Permalink

The cost belonged to Trump, all Hillary was able to get was large Cities,  it's a sea of Red from coast to coast with little blue specs representing the Cities when you look at how each County went in the election. 

In reply to by Arrest Hillary

shimmy Thu, 07/27/2017 - 07:32 Permalink

I'm stunned that some people on that shitty service may have grown tired of seeing tweet after tweet going on about all things trump, critical or supportive. 

Dode415 Thu, 07/27/2017 - 07:35 Permalink

Tried it for a day and just couldn't see the point of it- the bastards won't stop emailing me now telling me to follow people I've never heard of ! 

66Mustanggirl Thu, 07/27/2017 - 07:36 Permalink

Has anyone ever REALLY looked at these Twitter accounts? Use Trump as an example. 35 MILLION supposed followers but scroll down his Twitter feed and a really, really REALLY good tweet might be read by 120k people. Tops. Most get 18k, 30k, 60k reads. Big whoopty-do. And it is the same for every other Twitter account, and you can throw Facebook in there, too. Everyone touts their "massive" following because millions have "liked" their page but then you look at their posts and you realize that no one in the real world is engaging.

Everything is smoke and mirrors these days, folks. EVERYTHING!