For the past six months, Twitter has been selling investors on
a user growth metric it didn't used to care much about: Daily active users.
Not exact matches
Greencrest's 2014 Twitter IPO projections are based on a variety of
metrics, including recent management changes, partnerships with major brands,
user growth, and, most importantly, revenue
growth.
The social network is said to be concerned about Snapchat's rapid
growth and the fact that it appeals to millennial
users, while some
metrics show that sharing and engagement on Facebook has fallen.
The company reported monthly active
users, an important
metric scrutinized by investors who worry that Twitter's
growth has peaked, rose 23 percent to 284 million in the quarter.
A marked slowdown in key active
user metrics has put slowing revenue
growth in focus.
In the past, companies like Dropbox could point to
growth metrics — unpaid
users or eyeballs — as predictors of success.
They must learn the essentials that all investors look for: rapid
user growth, proven customer acquisition
metrics from previously tested sales and marketing channels and knowing the best, most cost - effective sales and marketing tactics to stretch their limited budgets.
Twitter's daily active
users also grew 10 percent year over year, a
growth metric the company like to point to instead of its total
user base.
The model examined common
metrics such as
user growth and engagement, as well as more bespoke things like «quality of revenue» by putting more weight on money from loyal customers.
«We were encouraged by continued strong volume
growth and
user metrics and believe the magnitude of the EPS beat and raise was likely in line to slightly better than expected.
Although the number is, on the surface, just referring to the
growth of Amazon's exclusive Kindle catalog, in reality it's also another
metric related to Amazon Prime — the membership program which lets
users pay on annual basis for access to faster shipping and unlimited video streaming, among other things.
Because Wall Street strictly judges social networks on
growth metrics, they're often scared to purge fake accounts and underage
users.
The prevailing argument - one over whether price is a success
metric held by the whole community, or if other factors like
user growth are more important - is likely to now intensify.
Responding
users recommended
metrics such as level of decentralization, number and
growth rate of active participants / participating nodes, and developer activity as fundamentals that need to be looked at.