Twitter Beats Revenue Expectations Again but User Engagement Slows
At Twitter, a pattern is emerging: its ad business is growing at a steady clip, but it can’t get the number of users to grow or stick around.
The social media company posted $361 million in revenue, a 114% annual increase, according to its filing on Wednesday. Advertising revenues reached $320 million. Its other revenue bucket — “data licensing and other” — expanded by 171%, reaching $41 million. Mobile is now an even greater chunk of Twitter’s ad business, accounting for 85% of its overall ad revenue.
But Twitter hasn’t solved its nagging growth issue, with the pace of active user growth slowing slightly in the third quarter, as compared to the second quarter. During the quarter, which included July, the final month of the World Cup, the company added 13 million monthly active users, with three million coming from the U.S. It has 271 million total users.
