Monday, February 15, 2016

Twitter Loses 2 Million Customers in the last 3 Months


Twitter announced on Wednesday that it lost 2 million users in the last three months of 2015. Shares plummeted as much as 12% in after-hours trading.

According to CNN reports say that; Twitter had 305 million active users by the end of 2015. By contrast, Facebook (FB, Tech30) has 1.6 billion. Google (GOOGL, Tech30) has eight products with over 1 billion users each. Even Instagram surpassed Twitter in September, growing to 400 million users, its growing at a snails pace.

The company is still a relatively niche product that hasnt been able to expand its reach the way that its rivals have. Although it has been able to effectively generate sales from sponsored tweets and partnerships.

With new management, products, designs and features, Twitters growth has stagnated, and its nowhere close to turning a profit.

However, Twitter disclosed that it is testing a new algorithm that will change the chronological order of feeds, hoping to appeal more to casual users who arent obsessed with keeping up with thousands of tweets in real time.

Twitter CEO, Jack Dorsey, said its new timeline feature has shown real promising growth in user engagement.

Were going to refine our core service and make everything more intuitive, Dorsey said. Theres an opportunity to fix broken windows and confusing aspects that are inhibiting growth. We think the timeline is a big part of that, Dorsey added.

Sales

Fourth quarter of 2014: $479 million
Fourth quarter of 2015: $710 million, up 48%

It wasn't all bad news last quarter. Twitter reported record sales. The company continues to succeed in its advertising initiatives. The company said it had 130,000 advertisers by the end of the fourth quarter, up 90% over the previous year.

But the company said it expects sales growth to slow in the current quarter. It predicted that revenue will be between $595 million and $610 million this quarter, far below the median forecasts of analysts surveyed by Thomson Reuters.

Profit

Fourth quarter of 2014: - $125 million
Fourth quarter of 2015: - $90 million, 28% improvement

Twitter continues to lose money. Though its losses narrowed, it shows no signs of turning a profit.

Active customers

Third quarter of 2015: 307 million
Fourth quarter of 2015: 305 million, down less than 1%



Previous Post
Next Post

post written by:

0 comments: