Twitter logo (Photo : Reuters)
While Twitter reported on Wednesday an impressive 60 percent increase in revenue for the second quarter, it admitted that slow growth in number of users has hampered the company. The microblogging site earned $502 million in Q2, or equivalent to 7 cents per share.
It beat analysts' expectations, as advertising income jumped 63 percent to $452 million. The bulk of that, or 88 percent, came from mobile devices, reports The Washington Post.
But increase in number of active users was less impressive at 316 million, up by only 8 million compared to Q1. Reckoned from 12 months ago, the increase was only by 15 percent.
However, among regular Twitter users, less than 50 percent check the microblogging site daily, noted The New York Times.
The number pales in comparison to Facebook which had already breached the millionth mark. In a conference call with analysts, Twitter interim Chief Executive Jack Dorsey and Chief Financial Officer Anthony Noto admit the company needs a longer time to enjoy sustainable user expansion and penetrate the mass market. Dorsey adds that its user growth numbers are not acceptable and Twitter is doing a not-so-impressive job of expanding accessibility.
Among the recent efforts of Twitter to have a wider audience reach was to purchase in March Periscope, a live-streaming service. Twitter will also implement in fall Project Lightning, designed to make it easier for members to find the most important posts such as live events and breaking news.
Twitter should aim to be the most powerful microphone in the world and users should find using the microblogging site "as easy as looking out your window," adds Dorsey who replaced Dick Costolo on July 1 in response to complaints of investors over Twitter's weak performance.
