Twitter failed to grow its audience in Q2 – total revenue dropped 5%

For the second quarter of the year, social media platform Twitter fell short of expectations and failed to boost its monthly user figures.
Total quarterly revenue dropped 5% to $574 million. Advertising revenue was down 8% year-on-year to $489 million, whilst data licensing and other revenue totaled $85 million.
In the US, revenue decreased 7% to $335 million. That’s potentially bad news for a company whose biggest advertisers are all US-based. Its international revenue drop wasn’t quite as bad at 1%.

The company’s long-term turnaround strategy depends on its audience. Right now, it has 328 million monthly active users, which is the same as its Q1 audience and a slight increase from the previous year (5%). However, that growth may not be fast enough to please shareholders. In addition, it doesn’t help that monthly active users fell 1% in the US from Q1 to Q2 2017.

The social media network has been working hard to prove that it is a sustainable business by focusing on video content, particularly live content, as well as boosting a series of partnerships. In its shareholder letter, the company said that video was its fastest growing ad format during the second quarter with pre-roll and mid-roll in-stream video ads now available.
The company said:

We remain focused on driving value across our three key areas of our service: audience, content, and revenue. We believe these areas will have the biggest impact on our ability to create shareholder value. Let’s go through each in more detail.

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