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This article was published on February 10, 2016

Twitter’s earnings show Moments, algorithms and hearts aren’t bringing tons of new users yet


Twitter’s earnings show Moments, algorithms and hearts aren’t bringing tons of new users yet

Twitter’s earnings are out, and it’s a mixed bag.

On one hand, the company reports revenue of $710 million — an increase of 48 percent versus last year. Unfortunately, that’s met with a GAAP net loss of $90 million (but a non-GAAP net income of $115 million).

The real meat of Twitter’s earning lies in its user numbers, which onlookers are eager to see spike. The company reports its average monthly user base is now 320 million, up 9 percent versus last year.

But when compared to last quarter, Twitter user numbers are flat.

If you exclude its SMS fast followers, the monthly active user numbers are up 6 percent versus last year — but down two million versus the previous quarter.

Twitter says roughly 80 percent of its monthly user traffic comes via mobile.

TwitterTweetTNW

If we parse these numbers, it seems as though recent moves have yet to show a positive impact on the bottom line. Twitter has changed its stars to hearts, tweaked its feed and launched Moments, all to encourage new users to find value.

The company is turning things around. Major metrics for income like advertising, international revenue and data licensing are all up.

It’s just getting there slower than pundits would hope. With Jack back at the helm officially, maybe the company can turn the corner and hit a growth spurt.

Otherwise, it’ll need to figure out how to make the best of 300 million users or so.

Twitter Q4 and Fiscal Year 2015 Shareholder Letter [Twitter]

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