Twitter Inc. (NYSE:TWTR) announced its monetary gains for the second quarter of the year, which reflected its performance until the 30th of June. According to a research firm eMarketer, Twitter did not even look to account for 1 percent of the digital advertising market that was worth $145 billion, a year ago.
Shares of the social media company closed down at $36.54 on Tuesday. As of now, TWTR price is at $31 at the time of Friday closing. Analysts are skeptical about the appointment of Dorsey as the permanent CEO of the social media company. However, Dorsey has indicated that he wants to be on top of Square, which is a mobile payment startup that is getting ready for going public soon.
During Dorsey’s word with the investors, he said that the user growth numbers were nowhere near the target and deemed the number as unacceptable. He also added that the company did not work hard for being accessible to public. Dorsey has taken the lead after CEO Dick Costolo resigned from the post earlier this month.
Dorsey stated that there is no awareness in people about why to use Twitter for. Everyone knows what Twitter is but they are unaware about why to use it. According to Dorsey, it will take a lot of time for the company to reach the public.
The earnings per share and revenue of the company were well in the quarter, but the user growth showed poor signs. A loss of $137 million or $0.21 per share was recorded by the company. The total profit of the company raked in $502.4 million or 61 percent though. The Advertising revenue also raked up by 71 percent.
Twitter is going leaps and bounds in improving user experience by simplifying its services and improving its communication methods. The reason for a dip in the share price of Twitter is most definitely the fact that expenses growth has increased by a great degree and it has outpaced the revenue growth of the company in the last year.