Twitter surges back after positive financial results

Three months ago the Twitter share price fell off a cliff thanks to a worrisome earnings call, but bad performance does not necessarily mean a bad company.

The latest financial report demonstrated this. Revenues for the fourth quarter of 2019 were $1.01 billion, an 11% year-on-year increase, while Average monetizable Daily Active Users (mDAU) were 152 million for Q4, compared to 126 million in the same period of 2018.

The third quarter financials could now be viewed as a blot on the landscape as share price shot up 16% during the early hours of trading on Thursday February 6. This is still considerably down on the high of $45.85 in September, but momentum might well shift back in favour of one of Silicon Valley’s earliest successes.

“We reached a new milestone in Q4 with quarterly revenue in excess of $1 billion, reflecting steady progress on revenue product and solid performance across most major geographies, with particular strength in US advertising,” said Ned Segal, Twitter CFO.

“We continue to see tremendous opportunity to get the whole world to use Twitter and provide a more personalized experience across both organic and promoted content, delivering increasing value for both consumers and advertisers.”

Despite being one of the most successful social media companies in terms of adoption, Twitter is one of the Silicon Valley residents who has struggled to make a meaningful impact on the promised fortunes of the digital economy. Over the last 12-18 months, this painful equation has seemingly been balanced, but the Q3 results threw a spanner in the works.

Over the last 12-18 months, Twitter has been sorting out its house. It started offering more comprehensive products for advertisers to target and engage customers, as well as more insightful features on the reporting features. There were some minor glitches to these features during Q3, which impacted results, as did retiring legacy products.

Another factor to consider is what actually happened during 2018. In a sentence, not a lot. This meant AmDAU’s were down during the period, and therefore advertising revenues were also. All of these factors combined resulted in the poor performance during the third quarter, but they were all issues which could be fixed. This is the basis of the turnaround during the fourth quarter.

This is the first quarter the business has exceeded $1 billion in revenue and there could be more to come. With the Olympics in Tokyo, the UEFA European Championships and the US Presidential Election all taking place over the next twelve months, there certainly could be more active users on the platform, therefore more opportunity to advertise and, finally, more revenue for Twitter.

2020 could be a very good year for the company, especially with new video products and a much more comprehensive approach to advertisers.

Fourth quarter Year-on-year Full year Year-on-year
Total revenue $1.01 billion 11% $3.46 billion 14%
Net income $118 million (54%) $1.46 billion 22%
R&D spend $198 million 40% $682 million 23%

Tinder comes under the scope of Irish GDPR watchdog

Dating apps have forever changed the way millennials find relationships (for however long they last…) but Tinder has found itself under the scrutiny of the Irish regulator.

The dating trailblazer has found itself alongside serial privacy offender Google as the focal point of an investigation from lead-European GDPR regulator the Irish Data Protection Commission. The question is whether MTCH Technology Services, the parent-company of Tinder, complies with GDPR in terms of processing user data.

“The identified issues pertain to MTCH Technology Services Limited’s ongoing processing of users’ personal data with regard to its processing activities in relation to the Tinder platform, the transparency surrounding the ongoing processing, and the company’s compliance with its obligations with regard to data subject right’s requests,” a statement from the regulator said.

Interestingly enough, a recent investigation from the Norwegian Consumer Council (NCC) suggested several dating apps such as Grindr, OkCupid, and Tinder might be breaking GDPR. The investigation suggested nine out of ten of the most popular dating apps were transmitting data to ‘unexpected third-parties’ without seeking consent from users, potentially violating GDPR.

As these applications collect sensitive information, sexual preferences, behavioural data, and location, there could be quite the backlash. The Irish Data Protection Commission will investigate how this information is processed, whether it then transmitted onto third parties and if the developers are being transparent enough with their users.

Alongside the Tinder investigation, the Irish watchdog is also investigating a regular for the privacy enforcement community, Google.

Once again, transparency is the key word here, as it so often is when one of the Silicon Valley residents are placed under the microscope. The authority will hope to understand how Google collects and processes location data, while also seeing whether it has been effectively informing users prior to collecting consent.

Google is seemingly constantly under the scrutiny of one regulator or another due to the complex web that is its operations. No-one outside of Google genuinely understands every aspect of the business, therefore a new potential privacy scandal emerges every so often as the layers of complexity are pulled back. In this investigation, it is not entirely clear what product or service is the focal point.

What is worth bearing in mind that any new privacy investigations are most likely to focus on timelines which were initiated following the introduction of GDPR in 2018. Anything prior to this, for example the Equifax leak or Yahoo hack, would not have been subject to the same financial penalties.

For the Tinder and Google investigations, any wrongdoing could be punished with a fine up to €2 million or 4% of total annual revenues, whichever is greater. We haven’t seen many of these fines to date because of the timing of the incidents or investigations, but regulators might well be looking for a case to prove there is a bite behind the regulatory bark, a means to scare corporates into action and proactive security measures.

An excellent example of this enforcement concerns Facebook and the Cambridge Analytica scandal. The investigation into potential GDPR violations takes into account several different things; the incident itself, security procedures and features, transparency with the user and assistance with the investigation, to name a few. Facebook did not cover itself with glory and was not exactly helpful during the investigation, CEO Mark Zuckerberg refused to appear in front of a Parliamentary Committee in the UK when called upon.

As this incident occurred prior to the introduction of GDPR, the Information Commissioner’s Office in the UK was only permitted to fine the social media giant £500,000. Facebook’s annual revenue for 2013, when the incident occurred, was $7.87 billion. The maximum penalty which could have been applied under GDPR would have been $314 million.

Although the potential fines have been well-documented, until there is a case to point to most companies will push the boundary between right and wrong. Caution is generally only practised when the threat of punishment is followed through to make an example.

2019 app economy: TikTok ran riot as Disney got off to a flier

The older characters in the room might not get the appeal of small(est) screen entertainment, but the app economy is real and generating some serious revenues today.

Although gaming is the most obvious segment of the app economy to act as the poster boy, apps are now spanning the breadth and depths of our daily lives. From healthcare to banking and messaging to shopping, if you can think of it, there is probably an app for it.

With 2019 now firmly in the rear-view mirror, Sensor Tower has completed its analysis of the final quarter and the biggest stories over the course of the 12 months. And starting with the top-line figures, the app economy is booming.

Across the 12 months, Sensor Tower estimates there were a total of 114.9 billion app downloads, a 9.1% year-on-year increase, with Apple’s App Store collecting 30.6 billion at 2.7% growth and the Google Play Store at 84.3 billion with growth rate of 11.7%.

Looking at the breakdown of where users are most interested, three areas dominate as most would have expected. Social media, in which we are going to include the messaging applications, video and gaming.

WhatsApp once again claims the title of most downloaded application throughout the year, though TikTok has completed a whirlwind year by claiming second place. While it is undoubtedly a popular application, there has been plenty of negative press to dissuade people from downloading.

In October, Republican Senator Tom Cotton and Senate Minority Leader Chuck Schumer requested a national security investigation into the app, while the US Army and Navy both banned the use of the device on government-owned devices. To make matters worse, TikTok then had to announce it had fixed a vulnerability which allowed hackers to manipulate user data and reveal personal information.

While all of these incidents tarnish the reputation of the app, it wasn’t enough to stop users downloading. Even for the final quarter, the period where TikTok’s credibility came under the spotlight, it was the second-most downloaded application on the App Store and the third most popular on the Google Play Store.

Another remarkable statistic is India accounted for 45% of the total downloads, while Brazil was the second largest market for TikTok. Revenues for the app are already on the increase, there was a 700% sequential increase for the final quarter, but the remarkable popularity in two of the worlds most attractive developing markets will make this app a very interesting proposition for marketers moving forward.

Looking at the gaming section, Call of Duty publisher Activision demonstrated it is possible to successful take a game from traditional gaming consoles onto mobile. The game led downloads during the final quarter worldwide with 30 million downloads in the US and almost 50 million in Europe.

Gaming will always be the poster boy of the app economy, perhaps because it is the most obvious way revenues are generated through apps. What will be interesting to see over the next couple of months is how many of the traditional gaming titles, those which were designed for gaming consoles, are buoyed by the success of Call of Duty and attempt to crossover.

The final area worth noting from the report is the continued success of video content on mobile, most notably, Disney+.

While there are still questions about the depth of the content library, it cannot compete with the Netflix breadth and depth, the Disney brand and the current assets have produced excellent results after the launch in the fourth quarter. The Disney brand is one of the strongest worldwide therefore there was always going to be good uptake, though it needs to capitalise on this momentum, investing heavily in diversified content, if it is to be a genuine threat to Netflix.

Looking at the downloads, it was the most popular app to be downloaded in the US with 30 million, taking in more than $50 million in revenue in the first 30 days. In Q4, Disney+ accounted for 34% of video content downloads, with Netflix and YouTube tied for second on 11%.

This success was also translated into the revenue share. Sensor Tower estimates Disney claimed 16% of the total revenues across the quarter, just leading Netflix which claimed a 15% share. What should be noted however, Netflix has shifted payment from the app stores and onto online channels.

However, one swallow does not a summer make. We suspect numerous subscribers were downloading the app out of curiosity, therefore a much more telling picture of Disney will be in 12 months’ time. Unless the current content assets are supported by new, and varied, titles, we suspect churn might be considerable. Netflix is still content king for the moment, but Disney could not have gotten off to a better start in its challenge.

App economy hauls in $277mn on Christmas Day

Some are preoccupied by presents, others by the mountains of food, and a few are even napping in the comfy sofa, but more of us are spending money on in-app purchases on Christmas Day.

According to data from mobile analyst firm Sensor Tower, $277 million was spend on apps across Google Play and Apple’s App Store on December 25. This represents an 11.5% increase on the amount spend in 2018 while the entertainment category brought in the biggest gains across the app economy.

While the US accounted for the largest proportion of spend globally, it trailed the average grow. In the US, just over $80 million was spend across both the app markets, representing a comparatively sluggish year-on-year growth of 4.8%.

Christmas is usually a profitable time for those involved in the app economy due to the number of new devices, first-time mobile customers and vouchers being offered as last-minute gifts, though interestingly enough, the non-game segment also grew, indicating that perhaps there were some urgent Uber’s called once the realities of spending the evening with the in-laws kicked in.

Big Tech sign-up to make smart home standards

Apple, Amazon and Google are joining forces with the Zigbee Alliance to form the Connected Home over IP project to create universal standards for the smart home ecosystem.

The aim of the project is simple; get ahead of the game and reduce the potential for ecosystem fragmentation in the smart home. With Apple, Amazon and Google on board, the working group has access to the worlds’ most popular virtual assistants and can drive towards creating a framework which encourages interoperability and compatibility.

“Our goal is to bring together market-tested technologies to develop a new, open smart home connectivity standard based on Internet Protocol (IP),” Google’s Nik Sathe and Grant Erikson wrote on the company’s blog.

“Google’s use of IP in home products dates back to the launch of Nest Learning Thermostat in 2011. IP also enables end-to-end, private and secure communication among smart devices, mobile apps, and cloud services.”

While it might seem slightly unusual that the internet giants are attempting to collaborate without being forced to, the bigger picture makes it a bit more logical.

The likes of Google, Apple and Amazon are looking to make more money from the software and services elements of the smart home ecosystem. This is an admirable quest, though for money to be made there needs to be mass adoption of smart home products.

As it stands, smart home devices manufacturers are facing a conundrum. Either, spend a lot of money to make sure devices are compatible with all the different smart home ecosystems which are developing, or pick a winner and risk losing out on customers who will exist elsewhere. By creating universal standards for the smart home ecosystem, the manufacturers will theoretically be more encouraging to engage in this emerging segment.

What is always worth remembering is that while the likes of Google and Amazon currently sell smart home devices, there will be a lot more money for these companies on the software side when smart home products are adopted on scale. This is their bread and butter after all, with a plethora of existing relationships already in place. Looking at Apple, this is a company which manufactures premium devices, but has some very aggressive ambitions in the software and services world. This is where CEO Tim Cook envisions growth for the company in the future.

Ultimately this is a good sign for the industry. Collaboration is a word which is thrown around so much nowadays it is almost meaningless, but when it results in universally accepted standards to drive interoperability and compatibility, there is something genuinely exciting to look forward to.

Facebook admits to tracking users even after opt-out

Two US Senators have gained the upper-hand over Facebook in a patient game of chess which could see further action from authorities.

Responding to a letter from Democrat Senator Christopher Coons and Republican Senator Josh Hawley, Facebook Deputy Chief Privacy Officer Rob Sherman has confirmed Facebook use geo-location data even if the user has used opted-out through the devices operating system.

The reason behind this disregard for consent; it wouldn’t be able to serve ads to the user if it didn’t have an idea of location.

“When location services is off, Facebook may still understand people’s locations using information people share through their activities on Facebook or through IP addresses and other network connections they use,” Sherman said in the letter to the Senators.

“By necessity, virtually all ads on Facebook are targeted based on location, though most commonly ads are targeted to people within a particular city or some larger region.”

There is a logic to the Facebook response, though that does not give the app the right to ignore the fact the user may have opted-out. Facebook can still serve ads to people based on other aspects of the profile, which might present a challenge for the team.

What Coons and Hawley have done here is play a very strategic political move. Politicians in the US have been attempting to hold Facebook accountable for years, though the social media firm always seems to wriggle out of tight spots. This time, however, the two politicians have forced Facebook to admit it is ignoring opt-outs from the user. Coons and Hawley have handed a half-tied noose to Facebook and asked it to finish the job.

That said, Facebook has seemingly escaped previous scandals without severe or long-term damage (is it that worse off after the Cambridge Analytica scandal?) and may well do so again. It’s PR and disaster management gurus are proving to be some of the most competent in the industry, though there are very well-practiced so perhaps this is unsurprising.

If you are someone who wants to make sure Facebook never tracks your location, there is a way, though it is difficult. Firstly, you will have to opt-out at OS level, then find the opt-out in the application. Secondly, you will have to make sure you never tag a location in your own posts or be tagged in a friend’s post which links to a location. And don’t even think about checking-in to that new, trendy restaurant, or searching for a bargain on Market Place.

Now thanks to AI, it would also be helpful never to have a photo with a recognisable landmark in the background, or business which can be tracked. With machine vision and image recognition improving significantly day-on-day, you might only need to be stood in-front of a semi-famous painting, or the coffee shop on the corner to give away your location.

After all this, it might also be worth downloading a VPN.

Facebook has been ducking and diving past the swipes politicians and authorities have been throwing in recent months, but Coons and Hawley have made it a lot more difficult. Facebook has admitted to ignoring opt-outs, removing a lot of wiggle-room.

MyData signs on first Finnish operator as battle for consumer data rights rages

MyData is not a company which many would have heard of, but it is one everyone should start to take notice of.

The concept of MyData is quite simple. This is a non-profit organisation which acts as the middle-man to collect and manage consumer’s personal information and data. It is a single point of contact where a consumer can manage the flow, depth and breadth of personal data which is flowing across the digital world.

Companies who are betting big on the data-driven world of tomorrow will not like organisation like MyData. This is an organisation which aims to take control of the data-driven digital world, and hand it to the consumer.

This might sound like blue-sky-thinking, but in signing-up Finland’s first operator, Vastuu Group, the idea is starting to spread.

“In today’s data-driven world it is important that the use of personal information is fluent and human-centric,” said Vastuu Group’s Deputy CEO Mika Huhtamäki. “Vastuu Group is a founding member of MyData Global network. We want to build co-operation between different MyData operators and enhance sustainable data-based business.”

For the consumer, this is a very interesting and beneficial idea.

As it stands, the world is not educated on the dangers of the internet. There are still a vast number of unknowns, both in terms of how users could endanger themselves and what the consequence of lost/stolen/copied personal data actually is. Because of these unknowns, few people are appropriately guarded when engaging with the digital economy.

For example, your correspondent has recently downloaded an app called ‘WalkIn’, which allows the user to digitally stand in the queue at restaurants which do not allow bookings. It is a very good idea, though only when researching this article did your correspondent dig into the terms and conditions to understand where the collected personal information was heading and what it was being used for.

In this example, there was little consequence. WalkIn Limited is a company run out of Manchester, and while it collects far more information than necessary for the app to perform effectively, it does not look to be engaging in any nefarious data sharing practises (although this is very difficult to judge on the surface).

This illustrates a point. How many applications have been downloaded by an individual without checking into who the developer is, what information is being collected and where it eventually ends up? We suspect 99.99% of downloads (if not more) would fall into this category.

Firstly, the user is not aware of breadth, depth and type of personal information which is being handed over. And secondly, as few people could remember every single app they have ever downloaded, tracing this information down to understand the consequences will be incredibly difficult.

With companies like Vastuu acting as guardians of personal information for the consumer, it is a logical step to improve the safety of the internet and the digital economy. With the creation of a new business model, “Authorisation as a Service”, companies like Vastuu will be a central point for that consumer, allowing data to be tracked and for the companies who want to make use of it, to be held accountable.

Theoretically, this is an attractive proposition for the health of the digital consumer, but for it to work, the developer community will also need to be engaged. This might be a bit trickier.

Data-driven technology companies are difficult beasts to pin down, especially those in the app economy. Few people would recognise the name of developer organisations, but these companies control the personal information of unknown numbers of people. Such is the embryonic stage of regulating the digital economy, the concept of auditing and reporting on personal information which is being held is almost non-existent. These companies have to prove they are safe-guarding it properly, but few people peer inside the walled gardens.

This dynamic is largely by design. Facebook builds incredibly detailed profiles on its users to serve the advertiser, and it is not alone here. Sky in the UK has a platform called AdSmart which allows you to target adult women, with two children, living in a south-east London, second-time mortgaged semi-detached home with a two-year old BMW in the drive. Other developers sell information onto parties where ambitions are a bit more nefarious than promoting the latest lipstick shade.

In any case, sceptics and critics of the current digital economy will suggest these companies want to muddy the waters as some consumers might retaliate and refuse to engage when the curtain is drawn back on the data wizard. There is probably an element of truth to this, which perhaps explains why a data-intermediators like MyData are not commonplace today.

MyData is an organisation which has the power to do immense good in the digital economy, but it will not be a simple path to success.

Uber fails to meet London’s standards once again

Uber is a firm which is never too far away from controversy, and it has opened a new chapter in the UK as Transport for London (TfL) has refused to grant the firm a new private hire operator’s licence.

The latest drama has unfolded following a review from TfL after it appeared the driver identification and authentication process was being abused. A change in the Uber systems allowed unauthorised drivers to upload their photos to other Uber driver accounts and operate under false pretences. TfL has identified 14,000 trips which we completed by an unauthorised driver.

This does not mean the end of Uber in London for the moment, though it is not the most comfortable position. The firm has 21 days to appeal the decision with the Magistrates Court and will be allowed to continue to operate until the appeal process is complete. However, it no-longer has a licence to operate in London.

“As the regulator of private hire services in London we are required to make a decision today on whether Uber is fit and proper to hold a licence,” said Helen Chapman, Director of Licensing, Regulation and Charging at TfL.

“Safety is our absolute top priority. While we recognise Uber has made improvements, it is unacceptable that Uber has allowed passengers to get into minicabs with drivers who are potentially unlicensed and uninsured.

“If they choose to appeal, Uber will have the opportunity to publicly demonstrate to a magistrate whether it has put in place sufficient measures to ensure potential safety risks to passengers are eliminated.”

What is worth noting is this is a separate issue being faced by the firm, not a continuation of previous challenges. Uber has been in dispute with TfL over its licence since September 2017 and has already appealed to the Magistrates Court. As a result, Uber was granted a 15-month licence with attached conditions to fix its process systems and processes. However, once this licence expired in September, TfL opened the subsequent investigation leading to today.

TfL told Telecoms.com that it did not have the confidence in the Uber systems and processes to guarantee the safety of customers using the firm’s services. Uber will now have to demonstrate to another Magistrate Court it is capable of creating safeguards to meet the safety obligations. As a note, this is the first-time drivers in London have been found to be abusing the rules in this manner.

Next steps will see Uber back in court to demonstrate how it is making positive changes to meet the requirements of TfL. As TfL noted Uber has improved its system and processes since the original criticism, perhaps the most likely outcome is another temporary licence with conditions for improvement, though reputational damage from this saga is almost unavoidable.

US Senators suspect TikTok could be a national security threat

Republican Senator Tom Cotton and Senate Minority Leader Chuck Schumer have written to the Intelligence Community to request a national security investigation into social media video app TikTok.

Although TikTok has been paid particular attention in the request, the duo is asking other China-based applications with a significant US presence are also given some consideration. The move could represent an expansion of the aggression towards China and strain trade-talks between the two parties further.

“We write to express our concerns about TikTok, a short-form video application, and the national security risks posed by its growing use in the United States,” the pair said in the letter to Acting Director of National Intelligence Joseph Maguire.

“TikTok’s terms of service and privacy policies describe how it collects data from its users and their devices, including user content and communications, IP address, location-related data, device identifiers, cookies, metadata, and other sensitive personal information. While the company has stated that TikTok does not operate in China and stores US user data in the US, ByteDance is still required to adhere to the laws of China.”

The comments above pay homage to a Chinese law which requires Chinese companies to comply with requests from the Government and its intelligence agencies. While the law also states Chinese companies can refuse the request if it contradicts with the domestic laws in which the company operates, it is clear the US and others do not believe this clause holds much credibility or weight.

After being launched in 2017 by ByteDance, TikTok has proven to be a very successful additional to the social media scene. The app boasts more than 110 million downloads in the US alone and became the world’s most downloaded app on Apple’s App Store in the first half of 2018.

While this is the first-time politicians have waded into the waters, there has been criticism of TikTok from other avenues. US think tank Peterson Institute for International Economics described TikTok as a ‘Huawei-sized problem’, posing a national security threat to ‘the West’. The thinking here seems to be that the app collects location and biometric data and is unable to deny requests from the Chinese Government.

TikTok has proven to be an immense success in its short life, though the attention from security agencies in the US is an ominous sign. Alongside the shadow of doubt which will be cast on the app in the eyes of US citizens, it is not unfeasible for some sort of restrictions to be placed on the business.

Investors learn Silicon Valley can be volatile as Twitter tanks

Twitter’s share price was slashed by 18% as the market opened this morning, with the social media giant failing to find enough consistency to impress investors.

There was a brief glimmer of hope that Twitter might have been a company people could rely on, but rainclouds have once again emerged to spoil the parade. It certainly isn’t corporate doomsday for Twitter, but the management team will have to start ensuring some consistency if they want to remain in their current employment for the long-term.

Looking at the results, total revenues for the three-month period stood at $824 million, a 9% year-on-year increase, but short of the $876 million analysts estimated. Unfortunately for any optimists, the next quarter isn’t looking much better.

Twitter is forecasting revenue to be between $940 million and $1.01 billion for the next three months, down on the $1.06 billion which was estimated by analysts. Operating income is expected to be in the $130 million and $170 million range.

Although the steep decline in share price has largely levelled off, it does not make for comfortable reading.

The question which remains is what went wrong at Twitter? Looking at the materials presented during the earnings call, the management team is pointing to two areas. Firstly, seasonality. Twitter is suggesting fewer users were using the platform during the summer months than it was expecting, partly due to a lack of major events which were taking place over July and August.

Secondly, bugs in the legacy Mobile Application Promotion (MAP) product impacted the ability to target ads and share data with measurement and ad partners. The team also discovered certain personalization and data settings were not operating as expected. Twitter estimates the product issues reduced year-over-year revenue growth by 3 or more points in Q3.

Although these figures, this quarter and the next three months, are not the best it does not demonstrate the business is fundamentally flawed. This should not be seen as a company which will fall off a cliff, next year could be much more promising.

Firstly, the team is retiring legacy products and introducing new systems constantly, as well as creating more opportunities for those advertisers who are craving video engagement. This is an area which Twitter lags behind other social media platforms, though it could certainly catch-up.

Secondly, when you look at what is going to happen over the next 12 months, it would suggest there will be increased engagement from users and therefore increased opportunity for advertisers. In Europe, you have the UEFA European Championships, in the US, the Presidential Election and in Japan, the Tokyo 2020 Olympics. All of these events present major opportunities for Twitter to engage users.

Looking at user engagement, Twitter has decided to alter the way it reports figures, creating its own metric which will be known as ‘monetizable daily active users’ (mDAU). This could be a useful way to measure engagement, and the explanation below is taken from the letter to shareholders:

“Average mDAU for a period represents the number of mDAU on each day of such period divided by the number of days for such period. Changes in mDAU are a measure of changes in the size of our daily logged in or otherwise authenticated active user base. To calculate the year-over-year change in mDAU, we subtract the average mDAU for the three months ended in the previous year from the average mDAU for the same three months ended in the current year and divide the result by the average mDAU for the three months ended in the previous year.”

In short, it is the number of users which can be served ads each day. Using this metric, Twitter estimates it was able to serve ads to 145 million people each day, on average, which is a 17% increase on the same period of 2018.

The only issue with this metric is that it isn’t the most transparent when it comes to app downloads or concrete figures on daily usage. That said, according to data from Sensor Tower, it is still one of the most popular social media applications worldwide.

These results are not representative of a company which is in trouble, but more demonstrates the volatility of the internet segment. It was a bad three months, but that does not necessatily make Twitter a bad company. There are few companies which emerge from the garages of Silicon Valley which are genuinely reliable, but Twitter is one which will probably get better.

The fundamentals of the business are pretty sound. Assuming the team continue to improve the user experience and fix the bugs in the advertising machine, it will make money. Events across 2019 will attract more people only the platform, especially with social media likely to feature very prominently through the 2020 Presidential Election campaign. Perhaps the market needs to take a reality check on how much money it expects Silicon Valley to hoover up.