Twitter fails to add new users in last quarter of 2015

Saturday, 13 Feb, 2016

According to The Verge, it was not all bad for Twitter as it posted revenue of $710 million and a net loss of $90 million.

Mark Mahaney at RBC Capital Markets was among analyst offering a guarded outlook. It will work in a similar manner to Facebook's Suggested Posts and Suggested Videos, as it will be the first thing users see on their feeds when they log in. "Twitter has always been considered a second screen for what's happening in the world, and we believe we can become the first screen for everything that's happening now". "We've already seen that people who use this new feature tend to retweet and tweet more, creating more live commentary and conversations, which is great for everyone", explains the Twitter blog, somewhat optimistically given how its busiest users sometimes react to change.

This week, Twitter did unveil a new Timeline algorithm but the changes were tame compared to what earlier reports had suggested.

The stalled growth in the average number of active monthly users came despite a series of changes to make Twitter easier and more engaging.

The company has several revisions planned for its famous platform, including one change that appeared Wednesday that affects how users see their newsfeed.

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Mr Dorsey declined to detail what other tweaks might be in store for the service, but said there are a "number of broken windows" that needed to be fixed to boost user growth. Well, as the senior manager of Twitter, Mike Jahr, points out this will no longer be a problem with the new timeline.

Like Facebook, Twitter is shifting to a sorting system that relies on algorithms to track which tweets seem to matter most to individual users.

But the company did exceed analysts estimates on fourth-quarter revenue and profits. Twitter's earnings report showed that excluding those users, Twitter dropped from 307 million MAUs to 305 million. This allows Twitter to connect multiple products when single events happen - making Twitter a more appealing option for advertisers.

However, investors were also disappointed by Twitter's revenue forecast of between $595 million and $610 million for the first quarter of 2016. Dorsey, who also serves as CEO of Square and has presided over numerous layoffs in the last nine months, told listeners on the call that the company has a plan that will stabilize the financials.