Dorsey stated that there is no awareness in people about why to use Twitter for.
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Dorsey and chief financial officer Anthony Noto implicitly acknowledged the validity of that criticism, saying that Twitter’s performance had been unacceptable. The company posted a net loss of $137 million, or 21 cents a share.
What was said? For starters, there was Dorsey’s reminder that the road ahead for Twitter is both steep and long.
“Why Twitter” must be articulated clearly”, he said.
Noto also addressed the impact of Autoplay Video, which he says is beneficial to advertisers and users with a higher engagement rate than other advertising on Twitter.
As in the previous quarter, the focus was on a few key metrics: growth in users, engagement, and advertisement revenue.
For the third quarter of the year, Twitter is looking at earning a revenue between $545 million and $560 million.
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.
Dick Costolo, who served as Twitter’s CEO for five years, stepped down last month.
Twitter grew its active user count by 8 million from Q1 to 316 million in Q2, up 15 percent year-over-year. Keeping aside the effect of a strong dollar, revenue increased 68 percent.
Despite beating expectations (even their own!) for the second quarter results, Jack Dorsey, the interim CEO, has come out and said that he is “not satisfied” with the social network’s user growth. Some analysts think that it’s unlikely that Dorsey will become the company’s permanent CEO because he’s signaled he wants to keep leading the mobile payment startup Square, which is reportedly preparing to go public. The total profit of the company raked in $502.4 million or 61 percent though.
Some were impressed by the candour on display from the man who would like to take on the chief executive role full time. This also reflects a significant increase when compared to the company’s second quarter revenue of $312 during 2014.
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That’s one of the take-aways from the company’s Q2 earnings, which Twitter released Tuesday to investors with muted expectations. “[It’s] an answer to why Twitter must be articulated clearly and felt everywhere throughout the service”, he said.
