Biodun Iginla, BBC News

Biodun Iginla, BBC News

Tuesday, July 28, 2015

Twitter boss says 'not satisfied' with user growth

by Tamara Kachelmeier and Biodun Iginla, Technology reporters, BBC News, New York

16 minutes ago


Twitter's revenue and earnings for the second quarter have beaten expectations, but co founder Jack Dorsey has said he is "not satisfied" with its user growth.
The micro blogging site posted revenue of $502m, up 61% year-on-year and beating its own top forecast of $485m.
But active users reached 316 million in the period, up only slightly on the 308 million in the first quarter.
Mr Dorsey said the firm had to do more to realise its full potential.
"We must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter's value faster, and better communicate that value," he said.
The bulk of new active users came from the social network's SMS fast followers - people who sign up for text alerts but don't need a Twitter account.
Excluding these active users rose by just 0.7% compared to the previous quarter.
Mr Dorsey, who took the helm temporarily at the start of this month after previous boss Dick Costolo stepped down, has been under pressure to show how Twitter plans to reignite user growth.
The number of Twitter users is still dwarfed by its most high-profile competitor, Facebook, which boasts 1.4 billion users.
And analysts remain sceptical about its long term prospects for increasing active users.
Investors' initial reaction to the second quarter results was positive, with shares rising over 6% to $36.5 in after-hours trading.
But the firm's shares, which have fallen around 10% over the past year, are still below the $38.80 price they debuted at in 2013.
The firm, which has yet to post a profit, also reported a smaller than expected loss of $137m for the period.
Twitter said it expected full year revenue of between $2.20bn to $2.27bn, slightly higher than its previous forecast.

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