Twitter’s shares sank about 18% after its earnings on Tuesday, largely due to its big miss on revenue and lowered guidance.
But another major reason for the drop was its slowing user growth. As seen in the chart below, put together by BI Intellignce, Twitter’s monthly active users (MAU) have grown at a slowing pace almost every quarter. It did manage to increase its MAU to 302 million last quarter, but that was only an 18% jump from the previous year.
What’s more worrying is that Twitter CEO Dick Costolo indicated during the earnings call that its early MAU adds in this quarter has been disappointing. “We’re off to a slow start in April,” he said.
User growth has long been an important metric in gauging Twitter’s value. Twitter shares often drop even when it beats financial expectations, due to lower growth rates. This quarter’s weak MAU outlook may further worry investors.
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