Have we reached maximum Twitter? That’s what a lot of experts believe, and the numbers are starting to back it up. No matter how many presidential Tweets trend no matter how many celebrity scandals make the headlines, Twitter just can’t seem to grow their user base.
Earlier this year, the company thought things were looking up. The number of active monthly users was up about 14% to nearly 328 million. But three months after that, the number of active users remains the same. Any growth the site saw internationally has been offset by declines domestically.
Things weren’t much brighter on the financial side, with Twitter reporting a $115 million loss for the second quarter of 2017 – more than the $105 million it lost the same time in 2016. Now, of course, the site did take in over $500 million from advertisers, meaning they profited $490 million, but the bottom line still is still less than stellar.
The company claims it’s growing still, but you can bet that investors aren’t happy to see numbers stagnate. CEO Jack Dorsey noted that the site’s live video push was a success overall, and that led to a “positive response” from advertisers.
Of course, what really matters to advertisers is that people click on ads. And on that front, things are good: user engagement with advertising was up nearly 100% from 2016. It’s worth noting though, that while engagement with ads doubled, the price of those ads was nearly half of what it was before, meaning revenue was about the same.
In an environment that should have seen a decent amount of growth for Twitter, it looks like that just wasn’t there. As more people come to the site, just as many leave. Is Twitter as big as it will ever be? It’s impossible to say for sure, but it looks like that just might be the case.