Twitter recently reported a 24 percent increase in its daily user figures as a consequence of the COVID-19 pandemic of 24 – a record number of 166 million. This is a comparatively higher increase from 134 million Twitter was at the start and the 152 million users at the end of 2019. Though, Twitter remains realistic by saying that the “that usage has now stabilized as many people around the world settled into new routines”.
Since Twitter’s profitability is mostly reliant on advertising, the global pandemic has also negatively impacted its business model. A few companies have reduced their advertising expenses and, consequently, the company has seen a considerably insignificant loss of $7 million, compared to the profit it saw in the same period last year.
Twitter has said that, in response to the loss, it aims to re-distribute “resources and priorities to increase focus on [its] revenue products.” Notably, that includes putting engineers working on other projects to contribute to the Twitter’s mobile ad platform and other profitable efforts. The report claims that this won't come at the expense at Twitter’s “Trust and Safety” initiative to develop a less hostile community atmosphere, but it’ll be interesting to see how this be reflected in the real world.
For Twitter and its CEO, Jack Dorsey, the userbase increase seems to be a good start who was recently aiming at developing the platform’s output. That included boosting its mDAU figure - the number of logged-in users it can sell ads against -- to closer to 200 million by the end of 2020. However, the fact that Twitter says the mDAU tally has already begun to stabilize may mean that future growth could even slow down.
With regards to the majority of global companies adhering to compromises and postponing their events/conferences, Twitter may also be required to act extraordinarily to be able to retain its users and keep them engaged.