Twitter attributed the decline to sending fewer email notifications, moving away from its SMS service with phone carriers and working to cut down malicious accounts and focusing on the "health" of conversations on its service. Twitter also has room to grow by converting people who use the site infrequently into daily users, she said, which would allow the company to boost its revenue without having to grow its overall user base.
This implies users remain highly engaged on the social media platform and suggests plenty of room for growth as DAUs make up under half of MAUs.
However, the reveal is also giving investors and the general public a concrete idea of just how much smaller user engagement is with Twitter when compared to rival social networks.
Twitter's share price fell more than 8% in early Wall Street trading as record fourth-quarter revenues and the milestone of achieving its first full year of profitability failed to allay investors' concerns over a drop in user numbers and a weak revenue forecast.
Jack Dorsey, co-founder and chief executive officer of Twitter Inc.
After the current quarter, Twitter said it would stop disclosing monthly active users, a statistic internet companies have routinely reported over the past decade.
"We want to align our external stakeholders around one metric that reflects our goal of delivering value to people on Twitter every day and monetising that usage".
Twitter has made its first annual profit in its 13-year history but another fall in the number of its users and a disappointing sales forecast took the gloss off the results and sent its shares down almost 10 per cent. The company has historically never revealed how many active daily users Twitter has, only the amount of users who log in (at least) once a month.
Instagram alone had 500 million daily active users in 2017 (the most recent data we could find) and is most likely getting even more than that today. Facebook had more than more than a billion in the same period.
Twitter said it expected total revenue of between $715 million and $775 million for the first quarter of 2019. Its share of total worldwide digital ad spending is estimated to drop to 0.8 percent in 2019 from 0.9 percent in 2018, according to EMarketer.
The company, however, reported a better-than-expected 24 percent increase in fourth-quarter revenue, helped by growth in its video advertising business.