Today, the share price of Twitter plummeted by over 20 percent. The drop resulted to billion being wiped off the market valuation of the company following the admission of the social media platform that it had lost over a million of its users.
The second quarter revenues of the company were up by 24 percent to $711 million, slightly above the expectations of $697.3 million. Twitter’s net income swung to a profit amounting to $100.1 million as compared with a loss amoubting to $116.4m that was reported during the same period of the previous year.
The firm’s adjusted EBITDA for the three months to 30 June increased to $265 million from the $177.8 million last year.
However, 335 million monthly active users was reported by the Silicon Valley titan. It is down from the 336 million during the first quarter.
Even though the measure was up by 2.8 percent year-on-year, Twitter revealed that its monthly visitors would drop again in the current period, attributing it to the stricter privacy rules in Europ, changes to the way its services are used through SMS messaging, and the proposed drop on the intensified efforts to clean up the social media platform.
Twitter said that it is expecting its adjusted EBITDA to be between the range of $215 million and $235 million.
It is apparent that Twitter is conscious of the drop in its user numbers. Today, it promised to make its users feel safe to express themselves on the platform. Previously, the company has revealed that it is cleaning up its platform by banning fake accounts.
Jack Dorsey, the Chief executive and co-founder of Twitter, stated: “Our second quarter results reflect the work we’re doing to ensure more people get value from Twitter every day.”
He added: “We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviours that distort and distract from the public conversation. We’re also continuing to make it easier for people to find and follow breaking news and events, and have introduced machine learning algorithms that organise the conversation around events, beginning with the World Cup.”
Dorsey continued: “These efforts contributed to healthy year-over-year daily active usage growth of 11 percent and demonstrate why we’re investing in the long-term health of Twitter.”