Twitter recorded a modest increase in users during the third quarter. But that did not prevent their income from falling by 4% on the annual basis, up to $590 million. If you managed to dramatically reduce losses, up to 21 million. It's five times less than a year ago. The company now admits that it overestimated the number of followers for three years.
Twitter's actions rose 9% after posting accounts, because performance in the last quarter was better than expected by the consensus on Wall Street. The adjustment in the number of active monthly users goes back to the four quarter of 2014. It is justified because it inadvertently took account of the count made by the digit service, which now belongs to Google.
The calculation error contributed between one and two million additional users each quarter, they detail. The electronic log had 330 million of active followers at the end of September. It is four million more if compared to the preceding quarter, considering the adjustment. The increase is 4% in the year. The count of the users who attend the service on a daily basis is not affected.
The downward revision is in danger of detracting credibility from the company at a complex moment, by the growing rivalry of applications like SnapChat. The second-quarter count, for example, now shows that there was a contraction against the first when three months ago reported that a slight increase. The company has no data prior to 2014.
Jack Dorsey, his CEO, said in any case that last quarter allowed "progress" in three key areas. It cites in this sense that the implication of the audience with the social network increases, observes a change of trend in the income and that also improves its profitability. "We are making the product better to continue to attract people," he says, "and help them be informed."
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