Twitter Admits It Accidentally Inflated User Growth For Three Years

Twitter Admits It Accidentally Inflated User Growth For Three Years

Twitter Admits It Accidentally Inflated User Growth For Three Years

On Thursday morning, Twitter released its quarterly earnings in a letter to shareholders.

The company took in $590 million in revenue, which is down four percent from past year but still $3 million more than analysts expected.

Its monthly active user base rose slightly to 330 million, roughly in line with forecasts. The company revised their recent user count for the past three quarters by 1 million to 2 million but stated that they do not possess user data further back than that.

Today Twitter revealed that while it's actually growing now - it added four million monthly Tweeters over the last three months - the company has made a crucial error: It accidentally inflated user growth in its reports for the previous three years.

These results are a much-needed improvement over Twitter's dismal performance last quarter, when it didn't add any new users.

"This quarter we made progress in three key areas of our business: we grew our audience and engagement, made progress on a return to revenue growth, and achieved record profitability", Twitter CEO Jack Dorsey said in the October 26 press release.

Another reason Wall Street is happy? The third-party app that led to the monthly user miscalculation, Digits, allowed Twitter users to log into other online services using their Twitter credentials.

More importantly, Twitter's daily active user count increased by an astonishing 14%, the fourth consecutive quarter of double-digit growth.

It now says the issue was first there in the fourth quarter of 2016, and has made adjustments for it and the following quarters.

Revenues were $590 million, a decrease of four percent from a year ago but not as bad as analysts had feared for the one-to-many messaging platform.

Twitter has also been criticised for not taking enough efforts to stop abuse and harassment on the platform. "We're proud that the improvements we're making to the product continue to bring people back to Twitter on a daily basis". That will see the burgeoning company report a positive income for the first time, and may prove to investors and the wider world that Jack Dorsey's plan to revive Twitter is worth persisting with.

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