Twitter reduces losses, loses 4 million users because of iOS 8

At the end of last week, Twitter announced the results of the last fiscal quarter of 2014, and the first thing that investors noticed was the drastically reduced costs of the company.
Net loss amounted to $ 125.352 million, which is almost four times less than the loss received in the same, last, quarter of 2013, when the company lost almost $ 511.5 million.

Total revenue Twitter Inc. for the year almost doubled, to $ 479 million, of which $ 432 accounted for advertising. In the US, with every thousand ad impressions, Twitter earns $ 5.65.
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The number of monthly active users at the end of 2014 was 288 million people, which is only 4 million more than in September 2014.

Much more interesting is the excuse of Antoni Noto (Twitter Finance Director) about why the dynamics of audience growth have been falling for some time, which can be clearly seen on the chart above. As it turned out, because of a serious bug in iOS 8, which did not automatically log users into their accounts when switching from iOS 7, 1 million users simply “disappeared” from statistics. They were not counted as active users due to the fact that they did not receive any notifications from iOS regarding their account or followers actions.

Updating the Reader section in the built-in Safari browser led to the fact that another 3 million users who were considered “active” stopped seeing this information, and even without being (consciously) Twitter users, they were still taken into account in the statistics, again before the release iOS 8.

As a result, the company had to admit that it was a mistake on their side and now such a user will not be considered as “active”, or as a “user” in general.

In any case, investors were satisfied and on Friday the price of shares of Twitter Inc. climbed up on the NYSE by as much as 16% , amid expectations of the best figures for user growth in the current quarter Emerging markets should help the company to reach the usual growth rate in the near future, which is expected in the post-holiday period.