Twitter‘s user growth in the US came to a halt during the second quarter, stalling at 66 million users (including SMS), the same number as in the first quarter of the year.
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Similarly, Twitter posted earnings for the quarter of $0.07 per diluted share, which was on the high side of what the analysts were expecting.
The microblogging company said advertising revenue totaled $452 million, an increase of 63% year over year.
Chief executive Dick Costolo’s resignation in June can’t have helped either.
Twitter’s user growth is closely watched by investors eager to see the social media company reach a scale comparable to rival Facebook Inc., which counts roughly five times as many users.
Investors’ initial reaction to the second quarter results was positive, with shares rising over 6% to $36.5 in after-hours trading.
Twitter is forecasted to report revenue of $481.931 million, an increase of 54.38% from the revenue of $312.166 million for the comparable quarter. Twitter named co-founder Jack Dorsey (and his beard) as interim CEO.
Twitter Inc. (NYSE:TWTR) is scheduled to report its 2QFY15 earnings on July 28, 2015 after the market closes. In order to change the trajectory of the company, Schachter emphasized Twitter will have to “significantly improve its execution against its current strategy”.
Twitter said 12 million people now use the service through those platforms, up from six million the previous three- month period.
On a side note, rapper Snoop Dogg tweeted that he wants to be the company’s CEO!
As part of Twitter’s shift in its communications strategy, Twitter’s chief communications officer is also out. Dorsey’s name has been thrown out as a possible full-time CEO candidate, as has that of Adam Bain, president of global revenue.
Twitter shares are soaring after the struggling company beat Wall Street estimates.
Also among the most prominent departures is that of Jim Payne, CEO of the mobile advertising firm Twitter purchased for $350 million to boost its mobile ads. Founded in 2006, the company has grown quickly and the website now boasts hundreds of millions of active users.
Macquarie, which also maintains a Neutral rating and $40.00 price target, said Twitter is its least favorite name among Internet and video game publishers.
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“There is too much focus at Twitter on making the core product ubiquitous when it’s not ubiquitously appealing”, Wieser said.
