Twitter shares nosedive as revenue growth stalls
The microblogging site was able to boost its user base by only 1% to to 313 million in the second quarter.
Twitter Inc on Tuesday reported its slowest revenue growth since going public in 2013, triggering an immediate 11% drop in its share value to $16.40 (Rs 1,103) in after-hours trading. The microblogging site, which is struggling to boost its growth and attract advertisers, released its second quarter revenue and said that the next quarter too was unlikely to do better, reported Reuters.
The company’s net loss dropped to $107.2 million (Rs 713 crore) from $136.7 million (Rs 909 crore) in the second quarter that ended on June 30. Revenue climbed around 20% from a year ago to $602 million (Rs 4,004 crore), but was still below the Wall Street estimate of $606.8 million (Rs 4,036 crore). According to Reuters, the revenue forecast for the third quarter of $590 million (Rs 3,925 crore) to $610 million (Rs 4,058 crore) was also below the analyst estimate of $678.18 million (Rs 4,510 crore).
The user growth of the California-based company was also slow. It increased by about 1% to 313 million average monthly active users in the second quarter from 310 million in the first quarter, reported Bloomberg.
Among many changes proposed and introduced, company co-founder Jack Dorsey said links and mentions are no longer counted as part of a tweet’s 140-character count. Twitter's Chief Financial Officer Anthony Noto told Reuters that they were focusing on live sports, news, politics and entertainment by bringing more live streaming to the site and hope it will boost advertising.