Twitter Records Ksh.789 Billion on Revenue in Q3

Twitter posted a net profit of 789 Billion shillings ($789 million) on revenue of 758 Billion shillings ($758 million) for the third quarter making its share price soar by more than 15 percent on Thursday last week thus after reporting better-than-expected revenue growth and its fourth consecutive quarterly profit.

The company’s monthly active users averaged 326 million, down from 335 million in Q2. The decline was partly attributed to the company’s crackdown on fake/troll accounts.

Twitter’s purge against illegitimate accounts and the subsequent decline in active users have been seen as positives by many experts.

By banning troll accounts Twitter is making itself more attractive to advertisers who would not want their products or services promoted on a platform filled with hate speech, spam and false information.

“We have a more engaged audience and we are delivering a better return on investment for advertisers,” Twitter’s Chief Financial Officer Ned Segal said in an interview, suggesting that a highly engaged, smaller user base might be better for advertisers than a slightly bigger user base that is littered with inactive or fake accounts. 

The following chart shows that Twitter’s revenue growth: