Now add that business to Twitter‘s growing list of problems. Consequently, Twitter’s second quarter revenue forecast took a hit, with the company now predicting between $590 million and $610 million, which is significantly below Wall Street estimates of $677 million.
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“We’re continuing to look for new board members and you’ll see more additions this year”, he said, continuing, “My focus is a lot on recruiting this year and specifically in engineering and product” where he says the company is looking for more leadership. Twitter reported a net loss of $80 million, or 12 cents a diluted share, for the quarter. He made sweeping changes in engineering and product, appointing new leaders as some veteran executives departed.
Twitter shares skidded more than 13 percent at $14.36 in after-hours trading, extending their slump over the past two years.
“On the usage front, Twitter desperately needs to get its momentum back”, said eMarketer principal analyst Debra Williamson. This growth in revenue is also accompanied by the 26% growth in the company’s Non-GAAP expenses. On a call with investors, CEO Jack Dorsey reemphasized the need to make it simple for people to understand why they should use Twitter, and argued that the company had the right products and services to do so. Earlier this month, the company announced it would stream 10 Thursday Night Football games during the 2016 season, its first foray into broadcasting and live video, which newly resurrected C.E.O.
Investors have remained concerned about the company’s flagging user growth.
On the first page of its shareholder letter, Twitter stated that revenue came in at the low end of its guidance range because advertisers did not increase spending as quickly as anticipated. But that growth will mean nothing if it can’t also convince advertisers to target them. The final numbers fell below analysts’ expectations of $607.8 million, as reported by Thomson Reuters.Twitter’s turnaround plan has included an emphasis on live offerings including commentary and video streaming through its Periscope app in a bid to attract new users.
Mr. Post thinks that Twitter’s monthly active users (MAUs) growth in the second quarter may be flat or down year over year (YoY), and ARPU growth may slow down below expectations.
But Twitter also faces competition from social media giant Facebook, which far surpasses the microblogging site with 1.6 billion users. The 305 million figure excluded so-called fast followers who used a text-message version of the service. Snapchat Inc, which has more than 100 million daily active users, has become a popular place to watch “live stories”, which include video curated from its users. Most of that growth came from outside the United States and from markets that were less mature and, therefore, less financially lucrative for Twitter.
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It is still very small compared to its rival Facebook and in size f users is about one-fifth of the Menlo Park, California based online social networking company.
