Just as the company is settling on “live” as its priority, so are its bigger competitors.
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Twitter shares slid Tuesday after a quarterly update worsened investor fears that the one-to-many messaging service can win enough users to be a lucrative, mainstream hit.
Twitter delivered a major disappointment to investors late Tuesday when it reported first-quarter financial results after the markets closed, raising fresh concerns the company will fall even farther behind market leaders Facebook and Google and lose ground to newcomers such as Snapchat.
“It is not just about showing a live event, it’s hosting a conversation around a live event”. “He said, Twitter‘s problem is that the management does not understand what they have”.
We’ll get to our Twitter stock recommendation shortly. It’s now testing the ads for people on desktop computer, who make up a small slice of its user base. To connect them through a follow, and to encourage them in a conversation.
“We have a product road map that we think is aligned with that specifically and we’re going to continue executing”.
Twitter hired a chief marketing officer, as well as curators for a live news product called Moments, meant to make the social network less daunting for new participants.
“Revenue came in at the low end of our guidance range because brand marketers did not increase spend as quickly as expected in the first quarter”, the company said in the statement.
Twitter reported profits of 15 cents per share on revenue of $595 million.
“It’s a bit troubling to hear Twitter say that brand advertisers aren’t increasing budgets as rapidly as they expected”.
The decline in revenue was blamed on lower spending from large advertising brands which promote their products on the social media site. In the shortest of terms, this is an increase and a substantial one equating to a year-over-year growth of 36-percent. The company said it had an average of 310 million monthly users in the first three months of the year, up from 305 million users in the last three months of 2015. However its annual growth in Q4 had been 9 percent, meaning that number is falling fast.
Ever since returned to helm the company he co-founded in 2006, CEO Jack Dorsey has insisted that Twitter needs to work harder at both attracting new users and giving occasional visitors more reasons to check back in.
Twitter’s first-quarter revenue, which ended on March 31, surged from $435.9 million to $595 million in the same period a year ago. The deal was a first-of-its-kind for Twitter, which reportedly paid the National Football League $10 million for the streaming rights and hopes to use the live games to attract more users and increase revenue from advertisers.
Twitter is exploring various ways to increase revenue.
USA revenue accounted fro $390 million of Twitter’s take, up 35%, with global revenue totally $204 million, up almost 40%.
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The social media platform predicted that in 2016 capital expenditures would be $300 to $425 million United States dollars with an adjusted EBITDA margin in the range of 25 to 27 percent.
