Twitter Admits to Overstating User Growth Figures

Lena Tucker
October 28, 2017

The microblogging site also grew its average daily active users (DAUs) by 14 per cent compared to the previous year, meaning its DAU base has seen double-digit growth in each of the last four quarters.

On Thursday morning, Twitter released its quarterly earnings in a letter to shareholders. (Apparently their internal calculations can now be trusted.) The bump pushes Twitter's MAU count to 330 million, although the company still held back on releasing its number of daily active users.

The Wall Street Journal reports that a Twitter spokeswoman reportedly admitted that the company had been including users of a service for third-party apps as monthly users when they should not have been counted.

In their third quarter, Twitter added approximately 4 million monthly users, surpassing analyst expectations by approximately one million.

The San Francisco based-company said that the error happened after it mistakenly included data from third-party applications in its counting. Twitter previously believed that their user base had stayed flat during the second quarter.

Thanks to cost-cutting across the business, Twitter said it could finally turn a bottom-line, unadjusted profit in the fourth quarter.

Wall Street rejoiced at Twitter's performance-company stock was up almost 15 percent in morning trading.

The company took in $590 million in revenue, which is down four percent from previous year but still $3 million more than analysts expected. "These third-party applications used Digits, a software development kit of our now-divested Fabric platform, that allowed third-party applications to send authentication messages via SMS through our systems, which did not relate to activity on the Twitter platform", the statement read.

It now says the issue was first there in the fourth quarter of 2016, and has made adjustments for it and the following quarters. "We'll be taking a more aggressive stance on our abuse rules and on how we enforce them".

Shares in Twitter have rocketed in pre-market trading on the back of a return to user growth, up more than eight per cent - and it even predicted that it is nearing profitability for the first time.

Other reports by AllAboutTopnews

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