Due to a poor first quarter and the resignation of company’s CEO, analysts are not expecting much from Twitter.
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For the second quarter, the San Francisco company posted a net loss of $137 million.
Monthly active users came in at 304 million, up 12% from a year ago.
“We are not satisfied with our growth in audience”, Dorsey said.
It revealed that the social media company managed to exceed its revenue target, earning a second quarter revenue of $502 million, way above the forecasted revenue of $470 million to $480 million.
U.S. revenue totaled $321 million, an increase of 53 percent year-over-year.
Twitter shares have increased roughly 2 percent since the beginning of the year, and have been trading near a 52-week low.
After the bell, Twitter shares extended losses and were down about 7 percent at around $34, after closing at $36.54 on the New York Stock Exchange.
Twitter formed a partnership with Google’s DoubleClick platform to enhance advertising performance measurement and attribution for its direct response marketers.
But as for the day’s burning question of who will be picked as permanent CEO after Dick Costolo’s exit this month, Dorsey said,”We don’t have an update to provide today”. “We expect it to take a considerable period of time”.
Despite Twitter’s healthy financial figures, its user base is more early adopter than mass market. Dorsey, while speaking with investors, said user growth numbers weren’t acceptable and the company didn’t do a good job of being accessible to the public. Mixed, really. Twitter stock popped and then fell again in after-hours trading.
Edison Investment Research analyst Richard Windsor disagreed. The reason for a dip in the share price of Twitter is most definitely the fact that expenses growth has increased by a great degree and it has outpaced the revenue growth of the company in the previous year. That is Twitter’s main beef with investors, the fact it has been two years on Wall Street and not shown any real profit or dividends to keep up with Facebook, Apple and other tech giants.
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To realize that, Twitter is working on improving user experience by simplifying its service and communicating better with audience. At the end of 2014, there were only 42 hedge funds with $1.01 billion invested in the stock.
