Twitter remains defiant as the number of active users fails to rise

The micro-blogging site used its latest financial earnings report to announce that monthly active users remain at 320 million, with analysts having predicted the figure to rise to 323 million.

In comparison, rival social network Facebook has over 1.5 billion users and recently reported record financial results of their own.

The site did however report revenue increases of more than 2 billion US dollars (£1.3bn), up more than 50 per cent on last year. The news comes in the wake of chief executive Jack Dorsey being accused of misleading users after denying a new layout for the Twitter timeline was coming soon, only for the feature to begin appearing this week.

The lack of growth in user numbers has plunged the social network into crisis in recent months, with co-founder Mr Dorsey returning to the company and around 8 per cent of the company’s staff being cut.

But in the reporting of its latest financial results, the company remained defiant and said that it would continue to grow.

“We saw a decline in monthly active usage in Q4, but we’ve already seen January monthly actives bounce back to Q3 levels,” said Twitter’s report. “We’re confident that, with disciplined execution, this growth trend will continue over time.”

However, Walter Price, from global investment firm Allianz, said: “I think Twitter is in a crisis and could be entering the internet graveyard that is populated by many other small internet properties that are used by people and have value to their users but are no longer growth companies.”