Twitter Inc. Reached An Worrying Milestone Of 1 Billion Inactive Users

Posted by MarkJ Guillen
5
Aug 5, 2015
374 Views
Image Twitter has decelerated in its offer to increase active users, while it provides inactive users a purpose to return.

According to latest Business Insider report, Twitter Inc. is trying to re-engage users. The conflicts spew from the inactive users on the twitter platform, which has reached 1 billion. The report was published after the company reported more than expected revenues for the recent quarter. The company’s revenue is up at $502 million, while the monthly active users stand at 316 million.

Jack Dorsey, Interim CEO of Twitter said during a conference call, “[The] product initiatives we’ve mentioned in previous earnings calls like instant timelines and logged out experiences have not yet had meaningful impact on growing our audience or participation. This is unacceptable and we’re not happy about it.” In light of his statement, company’s stock price tumbled significantly.

Twitter’s monthly active users have improved by 8 million since first quarter of fiscal year 2015.  However, this is mainly because of the SMS fast followers, which was included in the active user total in the previous quarter’s results, company reported. Anthony Noto, Chief financial officer said that when this is excluded, monthly active users hardly shifter to 304 million from 302 million users. Shareholders are cautious of the disappointed MAUs, which will be expected to abridged monetization, and less revenue per user.

Investor Chris Sacca highlights the circumstances in a blog that 1 billion users have used the social website, and didn’t stay. He thinks that majority of popular accounts were registered over 5 years ago. Moreover, 85 out of 100 active new users account are not active.

The number of active users has appeared as the most significant way to measure the growth and size of the platform. It is serious that Twitter shouldn’t only attract fresh users, but retain the existing users as well.  The company has declared since its initial public offering that approximately 5% of active users are junk accounts. As much as automated activities increase, the social network has witness their percentage increase to 11% in fourth quarter of FY14 from 8% in third quarter of FY13. In the recent quarter, the proportion increased to 14%, in spite of the company’s persistent that the number might dissolve in succeeding years.

The main point of focus here is retaining users; if Twitter emphasize on that, it might enhance the total active account growth. However, it is required to enhance user experience, and try to make its future improvements more expressive to persuade inactive users to come back to the social networking platform.

The recent report also states that Twitter is a difficult platform to use, and user still are not sure why the should be using it.


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