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Twitter's User Growth Stalls for the Second Quarter in a Row

But revenue meets expectations

Twitter had 320 million users on the platform as of the fourth quarter of 2015. Periscope

Twitter didn't fly very high in the fourth quarter of 2015. The San Francisco-based company, already facing pressure to grow its user base and value, didn't gain users, though its revenue did meet analysts' expectations.

According to Twitter's earnings statement, total monthly active users remained at 320 million in the fourth quarter—the same number it had the previous quarter. Total MAUs in the U.S. actually fell slightly, from 66 million to 65 million, while international users stayed at about 254 million. Year-over-year user growth increased by 9 percent in the fourth quarter, and mobile users now make up 80 percent of all MAUs. 

After its quarterly earnings were released, the company posted this tweet:

Revenue totaled $710 million for the quarter, a 48 percent increase over the fourth quarter of 2014. Advertising revenue was $641 million—$410 million from the U.S.—with 86 percent of that figure coming from mobile. 

"We made significant progress in scaling the total number of active advertisers to 130,000 in Q4, up almost [90 percent] year over year," the company said in a statement. "It's remarkable we built this business in just five years from zero revenue. We saw a decline in monthly active usage in Q4, but we've already seen January monthly actives bounce back to Q3 levels. We're confident that, with disciplined execution, this growth trend will continue over time."

Earlier in the day, Twitter introduced a new algorithm that reorders tweets at the top of users' timelines based on their activity, interests and network. While user reactions were mixed, agency executives say they're optimistic about the potential for relevant and popular content to be promoted above the traditional reverse-chronological news feed.

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