“Why Twitter” must be articulated clearly”, he said.
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Excluding the impact of a strong dollar, revenue rose 68 per cent.
Twitter, which is not yet profitable, posted a loss of $137 million or 21 cents per share, down from $145 million and 24 cents per share a year earlier. Meanwhile, the company also believes that their overall 2015 revenue will be somewhere between $2.20 billion and $2.27 billion.
The company brought in $502m for the second quarter of its fiscal 2015, which ended on June 30.
Investors have not been happy with Twitter (TWTR, Tech30) lately – even though CEO Dick Costolo announced he was stepping down last month. But the interim Twitter CEO said he would do “whatever it takes in whatever role to make both companies successful”. “Jack Dorsey knows that and hopefully their incoming CEO will have some ways to work toward that starting with the new products they’ve discussed”.
Twitter now has 316 million average monthly users, an increase of 15 percent year on year from 308 million. And analysts remain sceptical about its long term prospects for increasing active users from its current niche user base of celebrities and journalists.
On the other hand, Max Wolf of Manhattan Venture partners said, “It’s a pretty good story from a company that folks had really dumped on here and had a tough time in nearly any metric”.
“We have not communicated why people should use Twitter nor made it easy for them to understand how to use twitter“, Dorsey added.
The assessment hammered Twitter’s stock in after-hours trading.
The stocks spiked just after the release of the quarterly result but dropped greater than ten percent to $32.88. This is also a significant increase from the 2014 second quarter worldwide monthly active users of 214 million.
Adjusted earnings were 7 cents per share, above the 5 cents that analysts surveyed by Zacks Investment Research had expected.
For the third quarter of the year, Twitter is looking at earning a revenue between $545 million and $560 million. Analysts surveyed by Zacks expected revenue of $563.9m.
The trigger for the slide was an admission on an investor conference call by finance chief Antony Noto that Twitter’s efforts to break into the “mass market” might take a “considerable period of time” and that advertising revenue could be squeezed.
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After Twitter revealed its second-quarter numbers following the close of the regular trading session yesterday (July 28), there was an immediate spike in the company’s share price.
