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September 08, 2011

Twitter Brags About 100 Million 'Active' Users Milestone, Hush on Revenue Numbers

By Erin Harrison, Executive Editor, Strategic Initiatives

Although Twitter (News - Alert) is touting international leaders, athletes, reporters, humanitarians and entertainers among its now 100 million active users, the social network failed to address its revenue numbers during a recent press conference.



On Thursday, Twitter CEO Dick Costolo (News - Alert) addressed journalists during one his semi-regular "informal" business addresses, bragging about the social network’s most recent milestone.

But an official company blog post explains that of those 100 million “active” users, only about 60 percent of them actually send tweets.

“For many, getting the most out of Twitter isn’t only about tweeting: 40 percent of our active users simply sign in to listen to what’s happening in their world,” the blog post explained.

The microblogging social network also gave props to its progress in supporting as many as 17 languages.

“Twitter’s global reach gives a voice to people around the world and as far away as the International Space Station. After launching Hindi, Filipino, Malay and Simplified and Traditional Chinese in the coming weeks, Twitter will support 17 different languages,” the post said.

What’s missing from all of this patting oneself on the back, however, is Twitter’s latest revenue figures, as a report by The Atlantic Wire pointed out.

“We should think of revenue as the way people think of breathing, it's necessary for life but it's not the purpose of life," Costolo reportedly said, according to The Atlantic Wire. Loosely, this can be translated to: Twitter still has a lot of venture capital money and has yet to prove it has a successful advertising model.

Whether Twitter finds any victory with a commerce model, the company's chief revenue stream will continue to be advertising. Costolo told the New York Times earlier this year that the number of advertisers paying to use Twitter has increased seven fold this year.

As TMCnet reported in July, while Twitter’s jaw-dropping user statistics are indeed astounding, they underscore a long-running problem: Twitter hasn't been very good at making money.

With Facebook (News - Alert) reporting double-digit growth, Twitter investors are going to want to see some turnaround in their investment – or put their money elsewhere.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.


Erin Harrison is Executive Editor, Strategic Initiatives, for TMC, where she oversees the company's strategic editorial initiatives, including the launch of several new print and online initiatives. She plays an active role in the print publications and TMCnet, covering IP communications, information technology and other related topics. To read more of Erin's articles, please visit her columnist page.

Edited by Rich Steeves
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