Twitter shares sink after founder Jack Dorsey raises growth concernsComments Off on Twitter shares sink after founder Jack Dorsey raises growth concerns
The stock plunged by more than 11% after Dorsey, who took over as interim chief executive after Dick Costolo stepped down in June, said he was “not satisfied” with user growth.
“We are not satisfied with our growth in audience,” Dorsey said.
Twitter’s average monthly active users were 316 million for the second quarter, up 15% year-on-year.
Dorsey added that if Twitter is to realise its full potential, the company must simplify its service.
‘Why Twitter’ must be articulated clearly,” he said.
“What should you expect from Twitter? To be as easy as looking out your window to see what’s happening. To show you what’s happening in the world [first], directly from the source.”
He was, however, pleased with progress in monetising the service.
The company posted revenue of $502 million, up 61% on last year and way above expectations around $480 million.
Twitter is still yet to make a profit as it continues to invest available capital in expansion and posted a loss of $136.7 million, down slightly from $144.6 million last year.