{"id":35526,"date":"2023-10-20T14:39:07","date_gmt":"2023-10-20T14:39:07","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/can-twitter-stay-afloat-through-new-innovations-startupsmart-2\/"},"modified":"2023-10-20T14:39:07","modified_gmt":"2023-10-20T14:39:07","slug":"can-twitter-stay-afloat-through-new-innovations-startupsmart-2","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/can-twitter-stay-afloat-through-new-innovations-startupsmart-2\/","title":{"rendered":"Can Twitter stay afloat through new innovations? – StartupSmart"},"content":{"rendered":"
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By Sotirios Paroutis, University of Warwick<\/a><\/em><\/strong><\/p>\n

Another day, another round of disappointing results<\/a> for Twitter. The past six months have been turbulent for the social media platform. In its latest round of quarterly results, it reported a net loss of US$90m for the last three months of 2015. Its share price has dropped to US$14.98 \u2013 the lowest level since its IPO almost two years ago.<\/p>\n

In its latest Q4 earnings conference call, which was broadcast live through Periscope<\/a>, the firm delivered on revenues (total revenue reached US$2.2 billion for the year, up 58% from 2014). But \u2013 and most importantly for investors \u2013 Twitter showed no user growth compared to the previous quarter. And, its monthly active users excluding SMS-only users \u2013 who don\u2019t really count<\/a> \u2013 were down to 305m from 307m in the previous quarter.<\/p>\n

This sends alarm bells to investors, who judge the long-term prospects of social media companies by their monthly active users, as this is the bedrock of advertising revenue.<\/p>\n