Twitter reported earnings yesterday, and while the results were better than expected, the stock plunged more than 14% after interim CEO Jack Dorsey and CFO Anthony Noto shared a lot of bad news on the company’s earnings call.
Specifically, Noto said that Twitter’s user growth probably wouldn’t pick up any time soon. “We do not expect to see sustained meaningful growth in MAU until we start to reach the mass market. We expect that will take a considerable amount of time.”
This chart of user growth, compiled by Statista, shows why that’s such a problem. Growth in monthly average users (MAUs) has slowed dramatically since 2011, and dipped below 20% overall for the first time this year.
With no pickup on the horizon, investors have reason to wonder if Twitter’s hyper-growth days are well behind it.