Twitter has published its Q3 2021 results, which show consistent increases in both users and revenue. When you consider the platform’s aggressive growth goals, as well as its continuing investment in new initiatives, it does not appear to be paying off as expected.
Twitter hits 211 million active users
To begin with, Twitter’s Monetizable Daily Active User number has risen to 211 million, up by 13% year over year.
It’s a bit of a trick to interpreting Twitter’s metrics since the platform only reports direct year-over-year comparisons, as opposed to quarter-by-quarter charts. Here are its 2021 Q2 and Q3 mDAU figures side-by-side, for comparison.
As you can see, the number of new users in the United States was virtually unchanged, with all 5 million of its new users coming from other countries. This might not be a terrible thing, since Twitter still has a lot of potential in various markets, but it may be an issue for investors because the bulk of the platform’s earnings are derived from US users.
It’s obvious that any development is beneficial, but it’s interesting to look at where Twitter’s usage statistics are heading in light of its stated growth objectives announced back in February. According to Twitter’s Analyst Day presentation, the company aims to reach 315 million mDAU by the end of Q4 2023, with revenue climbing to $7.5 billion in that year.
Twitter had 199 million monthly active users in Q1 and 206 million in Q2 and 211 million in Q3. To reach 315 million mDAU by 2023, the annual increase must be around 38.6 million. It’s not exactly going according to plan right now, but if the platform makes the necessary improvements, its revenue numbers will have to rise considerably in order for it to reach those goals.
