Twitter shares fall amid concern over falling user numbers

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It's possible the company made a decision to do so because the daily active user number went up year over year while the number of monthly users went down.

Twitter rarely talks about the number of Daily Active Users, saying that it's a poor metric that would easily be misinterpreted.

Average monetizable DAU (mDAU) were 126 million in Q4, up 9 per cent year-over-year, with double-digit growth in five out of our top 10 global markets.

Expected total revenue for the first quarter of 2019 is between $715 million and $775 million for the first quarter of 2019.

The higher expenses could eat into eats earnings, some analysts said. The midpoint of that range was below analysts' average estimate of $765 million, according to IBES data from Refinitiv. Chiefly, in the same earnings release, Twitter also shared that it lost 5 million monthly users in the last three months of 2018, marking the service's third quarter of monthly decline.

Twitter revealed its number of daily users for the first time on Thursday, disclosing that there are 126 million people on the service.

But due to a recent decline in monthly active users - partly due to the social media firm's crackdown on fake accounts - Twitter chose to reveal its daily active users and will no longer be publishing monthly active user figures. If a Snapchat user taps a message notification, reads that message in the app, and then closes out, they are now a daily active user, but they at no point had the chance to see an advertisement, which is what advertisers really want to know from the data.

Total advertising revenue surged 23 percent to $791 million in the fourth quarter, with more than half coming from video ads by corporate clients.

Shares were down about 6 percent in premarket trading at $32.10, after closing at $34.16 on Wednesday.

Positive results reported by Twitter included quarterly revenue of $909m, up 24% year-on-year and ahead of Wall Street estimates, and full-year profits of $1.2bn. $791 million of that figure comes from advertising revenue, split $425 million in the United States compared to $366 internationally - while data licensing making up the other $117 million.

In fact, as Twitter hunts down violators and eliminates fraudulent accounts, its monthly active user stats are shrinking, and the company plans to stop reporting that figure.

Profit, excluding some costs, was 31 cents a share, compared with the average estimate of 25 cents.

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