“I think this is a rare case where a new CEO might actually have a chance to make a difference”, says Oremus, due to the fact that the company is in a transitional period.
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It’s an auspicious debute for interim Chief Executive Jack Dorsey who will be in the spotlight during the company’s earnings call.
Twitter is coming off a poor performance in the first quarter of the year, when revenue growth fell short of analysts’ expectations and sent the social media company’s shares down almost 20 percent. Kurt Wagner of Re/code discusses this with Here & Now’s Jeremy Hobson.
Jack Dorsey, who co-founded Twitter in 2006 and is acting as interim CEO until a new chief is found, said there was some progress in monetization, but still has work to do.
The key item on Wall Street’s radar, besides Twitter‘s results, is the status of Twitter’s CEO search. This surpassed the $481.28 million in revenue analysts surveyed by Thomson Reuters expected the company to report. In last year’s second quarter, the micro-blogging platform posted earnings of 2 cents per share and $312 million in revenue.
Twitter Inc. said second-quarter revenue grew 61%, a reassuring sign that its advertising business is working its way past a temporary hiccup.
Average monthly active users, a key growth metric, totaled 316 million, an increase of 15% year-over-year and up slightly from 308 million in the first quarter.
Twitter has made a series of product changes in an effort to make the site more intuitive and relevant to its users, such as creating a logged out homepage and opening up direct messaging.
Twitter management also released guidance that exceeded expectations.
Ever since Twitter went public in late 2013, Costolo and his leadership team were under fire from investors for lagging user growth, which threw into question whether Twitter would ever achieve the mainstream user base and advertising potential of rival services like Facebook.
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Twitter’s San Francisco headquarters. According to eMarketer, as much as 90% of Twitter’s ad revenues will come from mobile devices in 2015, up from 84.6% in 2014.
