Meanwhile, there is also a slight improvement on Twitter‘s GAAP net loss, which is now $137 million, compared to the $145 million GAAP net loss during the second quarter of 2014.
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Rich Greenfield, media and technology analyst at BTIG, said Twitter’s focus on user numbers was the opposite of what it ought to do in order to stay healthy. Meanwhile, Twitter’s stock is now up by 5.3% to $36.54.
While revenue growth was seen as positive, the sluggish increase in users sparked fresh worries among investors. “Jack Dorsey knows that and hopefully their incoming CEO will have some ways to work toward that starting with the new products they’ve discussed”.
The poor monthly data on users overshadowed the company’s second-quarter earnings and revenue, which exceeded expectations, and its bullish projections for future revenue.
Twitter might also be able to capture a new mass of users through Periscope, the live streaming mobile app it acquired earlier this year.
Q3 Revenue Guidance: $545 million to $560 million, versus the average analyst expectation of $555.8 million.
Twitter formed a partnership with Google’s DoubleClick platform to enhance advertising performance measurement and attribution for its direct response marketers.
Dorsey said Tuesday that while the results show “good progress in monetization”, the company is “not satisfied” with the growth of its audience. “This is unacceptable, and we’re not happy about it”, Dorsey said. The Independent notes they were at one point 11 per cent down in after-hours trading, wiping $2.75bn (£1.8bn) off its value. “We’ve got unbelievable brand awareness, but people are not clear why they should use it themselves”, he said.
Twitter Inc. (NYSE:TWTR) is all set to report its second quarter on July 28.
Moreover, Twitter is still in the hunt for its next permanent CEO, nearly a month after previous CEO Dick Costolo left the company.
Such users, referred to by Twitter as SMS fast followers, are less lucrative when it comes to targeted ads.
The San Francisco-based firm projected revenue for the third quarter to be in the range of $545m and $560m, and earnings for the whole year to be between $2.2bn and $2.27bn.
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In a conference call, Twitter Inc.’s Chief Financial Officer Anthony Noto stated that Twitter is not seeing sustained active user increase for a “considerable period of time”.
