How Much Revenue Can Twitter Generate From Passive Users?
Twitter (NYSE:TWTR) has struggled to grow its monthly active user base over the last year, with relatively lackluster performance in both the U.S. and international markets. However, Twitter stated in its full year 2015 earnings call earlier this year that its platform had a total audience of over 800 million users across the world. This translates to about 495 (800-305) million passive users who currently don’t help generate any revenue for Twitter.
In this note, we estimate the revenue potential from passive users for Twitter in 2016. We assume that a passive user will generate about 50% of the average revenue currently generated by an active user for Twitter.
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