Twitter’s second-quarter earnings report disappoints
TWITTER announced its second quarterly earnings on Tuesday which fell below expectations and disappointed investors. The social media company posted a profit of US$602 million, down from Wall Street’s estimated 607 million dollars.
The company continues to report slow growth in its user base with 313 million users to date up from 310 million in the previous quarter. Advertising revenues are also showing slow growth.
The company also cut its revenue estimates for the next quarter to US$590-610 million, well below analysts’ predictions of US$681 million.
Twitter’s market cap is now approximately US$11 billion, compared to the more than US$40 billion it experienced at the company’s peak.
This brought back speculation on a possible acquisition of the company and Chief Executive Officer Jack Dorsey’s shaky future.
Meanwhile, Dorsey laid down a turnaround plan with key focus on several areas – Twitter’s core service, live-streaming video, nurturing the platform’s creators and influencers, creating a safe environment for users, and building better relationships with third-party developers.
Twitter is aiming to transition the company from desktop video to premium mobile environments in the long run. Its plan to increase profits from video advertising by putting more videos on users’ timelines, is also part of Dorsey’s revival effort.
However, this effort may take longer than expected with rivals including Facebook, Snapchat and YouTube currently faring better in the mobile video market.
- Paperweight: Wealth management is still among the least tech-literate sectors of the financial services industry
- What can toy building blocks teach developers about security best practices?
- Reality check: Virtual events and the metaverse are not the same
- VMware’s Project Arctic gets going as Broadcom plans for the next generation of infrastructure software
- Mahindra: 2025 could be tipping point for EV adoption in India