Twitter isn’t going to be growing anytime soon, its interim chief executive said Tuesday in the San Francisco company’s second-quarter earnings call.
While the company posted $502 million in revenue due in part to showing more ads to each Twitter follower, it posted a loss of $136.7 million, or 21 cents a share. Analysts on average had expected Twitter to post a loss of 27 cents a share, when certain omitted expenses were included.
“We’ve been very successful at monetization, with a strong Q2, delivering [more than] $500 million in revenue and more than $120 million in EBITDA,” said Jack Dorsey, who also serves as CEO of digital payments company Square. “However, product initiatives we’ve mentioned in previous earnings calls like instant timelines and logged out experiences have not yet had meaningful impact on growing our audience or participation. This is unacceptable and we’re not happy about it.”
Chief financial officer Anthony Noto added that the company doesn’t “expect to see sustained, meaningful growth … until we reach the mass market. We expect it to take a considerable period of time.”
USA Today said that Twitter’s central challenge is the same one it has struggled with for years: It must overhaul the service that many find too complicated and clunky to make it far more appealing to the mainstream. Company executives placed the blame for Twitter’s predicament on problems with the product itself and with how it’s marketed. And they pledged to change both.
“Twitter’s leadership is going to have to answer once and for all the question of whether it’s going to be stuck at 300 million users or so forever, or whether they really can get back to growth,” Jackdaw Research chief analyst Jan Dawson told USA Today.
In the call with analysts, Dorsey “dodged the question” on whether he’s a candidate to take on the job permanently, USA Today said.
Twitter broadcast its earnings call on Periscope, its mobile video product.
Data curated by findthecompany.com