Twitter to Lose Users, Revenue to be Flat for Two Year

Social media platform Twitter Inc will see an exodus of users due to changes being made by new owner and Chief Executive Officer Elon Musk and flat revenue growth for the next two years, according to a report by Insider Intelligence on Tuesday.

Experts and users have had concerns about Twitter's ability to fight misinformation after it let go about half of its staff, including those involved in content moderation.

Twitter, which went private in October, will lose more users in the United States than in any of the countries Insider Intelligence tracks, the report said, adding that monthly users will fall to 50.5 million in 2024, the lowest level since 2014.

"Users will start to leave the platform next year as they grow frustrated with technical issues and the proliferation of hateful or other unsavory content," said Jasmine Enberg, principal analyst at Insider Intelligence.

The market research firm said Twitter's revenue growth will be flat for the next two years as revenue and staffing losses have made it more difficult for Musk to ship new products to increase usage and engagement on the platform.

Musk in November attributed a "massive drop in revenue" to civil rights groups that have pressured brands to pause their Twitter ads. The social media firm earns about 90% of its revenue from selling advertisements.

December 14, 2022