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Twitter still Struggling to Grow Users and Revenues

Eric Wainaina by Eric Wainaina
July 27, 2016
in News
Reading Time: 1 min read
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Yesterday, Twitter reported its Q2 earnings which were both disappointing in terms of revenue, profits and number of users. Twitter says the number of users grew by 3 Million to 313 Million monthly active users. The number of MAUs is heavily disappointing as compared to say Snapchat which has 150 million daily active users. Revenue for the quarter by the company was $602 Million.

Twitter, has been in recent years playing catch up amidst stiff competition from Facebook, Snapchat and even Instagram. The first of these moves involved founder Jack Dorsey taking over as CEO of the company.  Twitter hoped Jack will make tough decisions aimed at resuscitating growth such as launching innovative products and attracting new users to the platform. Twitter has added 9 Million users since and launched products such as moments in addition to aggressively marketing its ads.

Twitter is however bullish about its future but needs to get its house in order by focusing on growing users, retention of these users and increasing its revenue per user.  In recent times, the company has been looking to become the digital television of the future by signing deals with the NBA, NFL and others.  This will see the company show these events live on its platform and Twitter hopes this will serve as a unique platform to attract advertisers.  The company is also looking to also monetize cultural events such as Olympics and politics by letting advertisers tap into this immense audience.  Twitter did not however outline its plan for the international market, where it has seen most of its users come from and which should be the main focus for the company going forward.

Tags: Jack Dorsey
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Eric Wainaina

Eric Wainaina

Eric writes on business, govt policy and enterprise tech.

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