Twitter’s Performance Update Shows 12 Million New Users While Revenue Declines As Elon Musk Takes Over

Twitter has issued a unique performance update for the the first quarter of 2022 and this time around, we’re seeing a remarkable difference in the way things are being portrayed.

Instead of a summary of the classic quarterly results, we’re being provided a more transactional report and in case you haven’t guessed, a large part of this has to do with Elon Musk’s takeover.

Twitter recently acknowledged all of this through a public statement where they reiterated how the company was currently in the process of a transition. Therefore, as per their policy for acquisitions, things will be done differently.

This means no conference calls or letters being given to shareholders relating to updates about the company’s performance. Instead, data will be given in the form of raw figures being presented as a text for this year’s quarterly performance update.

We won’t lie, it’s definitely a lot less interesting but at least the data stays the same. Let’s now take a look at the breakdown.

Twitter did see growth in the form of increased subscribers. The average number of users on the platform currently stands at 229 million. That is a great change from the previous quarter’s 217 million. Moreover, it wouldn’t be wrong to say that the growth is being highlighted as the best the app has seen in the past two reports.

Also, we must take into consideration how Twitter no longer functions in Russia due to the ongoing conflict with Ukraine. Hence, despite these matters, any growth is welcomed with open arms.

Interestingly, Twitter admits that it had previously been overestimating the number of daily active users on a monthly basis for the past two years. But despite that mistake, we’re still seeing such great performance for this quarter and this needs to be highlighted.

Twitter even tried to provide transparency on the matter and how different the real mDAU estimates were in comparison to the actual figures. And you’ll be shocked to know that the difference was almost two million from that seemingly innocent mistake.

It may have been a major issue but keeping today’s progress in the limelight, this is a story of the past that’s not being given too much publicity. After all, you’ve got Elon Musk’s pending acquisition being at the forefront and it’s overshadowing everything else.

In terms of revenue, we saw Twitter score $1.2 billion in this quarter, which is a staggering 16% increase from last year. However, it went below other people’s expectations as the war in Ukraine had an impact. Hence, the report delineates that despite the $1.2 billion increase, the needle for growth doesn’t shift in any major manner for the platform.

On the other hand, Twitter’s report proved subscriptions and data licenses rounded off to 94 million- a whopping 31% decrease from the previous year. Therefore, this goes against critics’ theory of how new features like Twitter Blue are boosting up tractions because that’s not happening at the moment.

Whether or not it actually manages to transform into an additional stream of income- only time can tell.

Twitter has boldly confronted how many shouldn’t expect the company to give out guidance for the future because of Musk’s pending takeover. Similarly, it is in the process of removing any goals and future recommendations that may have been provided in the past as it hopes to start with a clean slate with Musk in command.

In a nutshell, Twitter is making progress if you look in terms of adding more users but we wouldn’t like to call that a strong effect. In the same way, the addition of newer features/products hasn’t been doing much for the platform either, as their additions make no major change in stats.

It may have been Donald Trump’s favorite means of communication in the past, but the app has failed to change people’s perceptions. We saw Twitter add Stories and an array of subscription tools too but again, that did not produce the results it was hoping for.

So what’s the solution? How can an app like this get more of its users to log in and allocate a chunk of their time to Twitter screens and engagement?

Well, experts believe one major factor that needs to be taken into consideration is algorithms. This includes putting relevant content in the limelight for each of its users. Remember, although millions of Tweets are rolled out each day, we’ve not seen them convert into insights that are attractive to the masses.

A major concern here has to do with the type of content at hand. While Twitter has plenty of it, it doesn’t correlate that with the interests of its users. Take TikTok for example, it’s been excelling at the game for a while and the results are in front of you.

We hope Elon Musk can fix this issue as he promises to make the app the center of free speech which users will love to support. For now, Twitter has a lot of important decisions to make in terms of which path it will choose when moving forward.

Read next: Twitter May Allow Users The To Post A Mixture Of Content, Such As Videos And GIFs, Within The Same Tweet
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