A recent paradox has emerged in the X ecosystem: despite a decline in daily active users, consumer spending within the app has skyrocketed. Data from Appfigures reveals a staggering 76.3% year-over-year increase in global consumer spending on the X mobile app between January 1-20, 2024 and the same period in 2025. This surge in revenue is a testament to the growing influence of premium features and the integration of AI capabilities.
Unpacking the Numbers:
- Global Spending Soars: Global consumer spending reached $13.4 million in January 2025, a significant leap from $7.6 million in the same period of 2024.
- U.S. Market Growth: The U.S. market witnessed a substantial 61.4% increase, with spending rising from $4.4 million in 2024 to $7.1 million in 2025.
- Monthly Fluctuations: While overall spending trended upwards, monthly figures exhibited some variability. December 2025 saw the highest spending at $25.6 million, likely influenced by the U.S. elections.
- Premium Subscriptions Dominate: The top in-app purchases in January 2025 were primarily premium subscriptions: X Premium Monthly ($11/mo.), X Premium Plus Monthly ($30/mo.), and X Premium Basic Monthly ($4/mo.).
The Role of AI and Premium Features:
- Grok AI's Impact: The introduction of xAI's Grok AI chatbot, with its free version and subsequent enhancements, has likely contributed significantly to the revenue surge.
- NFL Integration: The addition of an NFL portal aimed to boost sports engagement, a key area of discussion on X, potentially driving user activity and, consequently, spending.
User Base Contraction:
Despite the revenue boom, data from Sensor Tower indicates a concerning trend:
- Declining Daily Active Users (DAUs): Both U.S. and worldwide DAUs decreased by approximately 13% in January 2025 compared to the same period in 2024.
- Monthly Active User (MAU) Growth Slowdown: Year-over-year growth in MAUs has also shown a slight dip.
- Competition Heats Up: The rise of competitors like Threads and Bluesky, with their rapid feature additions and international expansions, has undoubtedly impacted X's user base.
While consumer spending remains a key focus, there are encouraging signs in X's advertising business. According to Guideline, ad spend saw a significant 123% improvement in December 2024, following a period of decline in previous months.
Conclusion:
X finds itself in a paradoxical situation: increased revenue amidst a declining user base. While premium features and AI integrations are driving spending, the platform faces stiff competition from emerging social media platforms. The long-term success of X will depend on its ability to retain existing users, attract new ones, and effectively monetize its platform through a combination of premium offerings, advertising, and innovative AI-powered features.
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