Twitter released its second quarter reports last Thursday, and it showed a lower-than-expected number of monthly active users. The company expected to increase its monthly users over the previous quarter, but the number remained unchanged, standing at 328 million.
The company share prices also fell by 13% in midday trading, after the reports came out.
“Twitter has zero user growth versus Facebook reporting 70 million new users,” Aegis Capital internet analyst Victor Anthony said.
“While we still have a lot of work to do for revenue growth to get it to track audience growth, the improvements in revenue growth reflect the progress executing against our top revenue-generating products in the second quarter as well as strengthening business fundamentals,” the company’s chief operating officer, Anthony Noto, said on a call with investors.
Twitter’s revenue from advertising also fell by 8% over the last year, totaling $489 million as compared to $535 million in second quarter ad revenue last year.
In an attempt to increase its reach, Twitter launched a less data-intensive version of its app named ‘Twitter Lite’ on April 6. It takes up less than 1 megabyte of storage. On the earnings call, Dorsey said initial results from Twitter Lite “look really positive” but declined to provide any statistics, warning that it was too early assess the success of the service.
Twitter share prices remain well below its IPO price of $26, which might also be a sign of trouble for the social media company, and an issue of concern among the company’s investors.
Megha Shah for TechFunnel.com