The Q4 results of Twitter for the year 2016 have been released which shows there is increase of 2 million active users monthly, but there is also a decrease of advertising revenue year-over-year. There is slight increase of audience when compared to the Q3 results of 2016. Last year Twitter was able to include 14 million new people to its database which really less when compared to other similar social media platform. Twitter has been struggling to increase its user growth, but the daily active users saw a growth of 11%. Even though this is really a slow growth for this social media channel, but there is still an increase of user growth.
According to Anthony Noto, CFO of Twitter there is a huge advantage for this platform as President tweets. But the actual growth happened due to marketing and product changes. All the product changes featured new algorithms as well as systems that helped to make this social channel more relevant. Most of the updates are really subtle and the user notifications have been getting more focused related to the current events. According to Twitter there will be many changes such as these with machine learning that would support them in refining each user experience on Twitter. Machine learning has been considered to very much important for Twitter in its process. Twitter is also known to be a real-time solution for its users, but it is slowly been changing into algorithm-defined stream due to its improved engagement.
Twitter users have been really resistant to wider change as they have been adding small changes which are changing the experience of Twitter users over time. This slower change from Twitter means there is an increase of active users daily which is almost double when compared to growth rate during last quarter which is really due to algorithm shift. Twitter has also made few particular changes which includes their Explore tab instead of Moments tab in its app that is more personalized as well as relevant. Even though the user growth has been improving regularly, there is no raise in revenue. There is a decline of 0.5% in the fourth quarter in advertising revenue and there will be lag in advertising revenue even in this year according to Twitter.
Twitter has been trying to improve its revenue growth which is very important to act against their slow user growth. But the reducing revenue is very much related to the audience growth which is also slower that is affecting the revenue growth. Twitter has seen the revenue growth only from its international markets even though there are local markets that drive more number of revenue for this social media channel. According to Twitter they had streamed about 600-hours live video of content partners in around 400 events during the last Q4. This was able to attract more then 31M viewers which included audience from age 25 and less. Twitter also broadcasted 6.6-million hours live video via Periscope during Q4 of 2016.