Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Jaltech backs solar firm Wetility in R500-million capital raise

      18 June 2025

      MTN CEO edges Vodacom rival in pay stakes – but just barely

      18 June 2025

      Stolen phone? Samsung now buys you an hour to lock it down

      18 June 2025

      New MD for Dell South Africa

      18 June 2025

      How a dowdy database maker became an investor darling

      18 June 2025
    • World

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025

      Yahoo tries to make its mail service relevant again

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » World » Twitter user growth stalls

    Twitter user growth stalls

    By Agency Staff27 July 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Twitter failed to attract more monthly viewers in the second quarter, spooking investors looking for evidence that the company is on a sustainable long-term growth path. The shares tumbled more than 9% in early trading, even as quarterly revenue topped analysts’ projections.

    A long-term turnaround depends on Twitter expanding its audience. That number stands at 328m monthly active users — the same as in the prior quarter, the San Francisco-based company said in a statement on Thursday. Revenue fell 4.7% and the company’s net loss also widened, affected by a US$55m writedown of the value of its investment in SoundCloud, the German music streaming service.

    Twitter is still working to prove that it can build a sustainable, growing business. After hitting a plateau with its user base and struggling with a slowdown in sales, the company started narrowing its focus, shutting businesses and teams that didn’t fit its goal of being a destination for live-event content.

    It’s a niche platform. It always was and always will be

    With a goal of reaching profitability, Twitter began investing heavily in video, aiming to draw a more mainstream set of users and premium advertising deals. The network now has a promising set of partnerships in its pipeline, but some investors are sceptical that Twitter will ever be much bigger than it is today.

    “It’s a niche platform,’’ said Brian Wieser, an analyst at Pivotal Research. “It always was and always will be.”

    Though its monthly audience failed to grow, Twitter said there’s room for optimism because 12% more users are visiting the site on a daily basis than in the same quarter last year. The company declined to disclose a daily active user number or provide further details. But Twitter also said that it doesn’t expect its overall sales growth to improve in the second half, citing “headwinds” related to products it’s de-emphasising.

    Net loss

    The company reported a net loss of $116.5m, or $0.16/share. Revenue dropped to $573.9m, though that beat analysts’ average estimate of $537.2m as the company drew more money from video advertising and its business selling data to third parties.

    In the third quarter, Twitter said it expects adjusted earnings before interest, tax, depreciation and amortisation of $130m to $150m. The average analyst estimate was $144.1m.

    Twitter’s business troubles contrast with its increased profile in the political world, as US President Donald Trump frequently uses the platform to reach the public in an unfiltered manner.

    Amid heated political conversations, users have criticised Twitter for its handling of abuse and harassment on the site. The company has worked to improve its process for responding to reports. The company reported a 10-fold increase in the amount of accounts it “takes action on” each day.  — Reported by Sarah Frier, (c) 2017 Bloomberg LP



    SoundCloud Twitter
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleMTN plunges 10% as profit disappoints
    Next Article EOH seeks to calm jittery investors

    Related Posts

    Elon Musk consolidates power as xAI swallows X

    29 March 2025

    How DDoS attackers took down Elon Musk’s X

    12 March 2025

    Bluesky’s radical idea: let users set the rules of social media

    10 March 2025
    Company News

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025

    Sage brings together HR leaders to explore the future of payroll and people management

    18 June 2025

    Altron: a brand journey, a birthday celebration and a bet on Joburg’s future

    17 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.