Twitter sees monthly users plunge, will stop reporting the number

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The number of daily users grew 9 percent year over year to 126 million in the fourth quarter, Twitter said.

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

The reason for the change is likely due to the fact that this new metric shows user growth on the platform.

Despite being much smaller than other social media platforms, Twitter continues to maintain daily user growth with a 9% increase in daily active users compared to the same time previous year.

Twitter has said it identified much less manipulation on its service during the 2018 US midterm elections from bad-faith actors located overseas than two years earlier during the presidential campaign.

Twitter CEO Jack Dorsey said in a statement, "We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service".

In its fourth-quarter 2018 earnings, Twitter revealed it has 126 million "monetisable" daily users, up from about 115 million a year ago.

According to Twitter's earnings report, "Monetizable DAU are Twitter users who log in and access Twitter on any given day through Twitter.com or our Twitter applications that are able to show ads".

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Monthly active users totaled 321 million in the fourth quarter, in line with analysts' forecasts but down from 330 million a year earlier and 326 million in the third quarter.

Shares were down more than 10 percent at $30.56 in midday trading. Twitter is also anticipating operating income during the quarter of $5 million to $35 million-well below the $74.9 million operating income Twitter posted during the same period past year.

"So, starting this quarter, in addition to sharing the growth in mDAU as we have since 2016, we are disclosing the absolute number of average mDAU (previously referred to as DAU), for both the U.S. and global markets", said Twitter. The company made $1.2 billion in profit for the year, its first profitable year since going public in 2013.

Overall revenue rose to $909 million (roughly Rs. 6,500 crores) in the quarter, beating Wall Street's average estimate of $868.2 million (roughly Rs. 6,200 crores).

The increase in daily user numbers is a positive for driving revenues from more engaged users.

Twitter shares sputtered and then fell sharply after the report, dropping as much as eight per cent in pre-market trade.

Expenses increased 13 percent to $704 million as Twitter added more employees and from revenue share costs related to its video offerings.

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