Twitter is losing customers and the stock falls

Twitter is losing customers 

It is difficult for the small core of Twitter addicts to accept, but Twitter, just not popular enough to be successful. In fact, Twitter can lose customers.

The social media company said Wednesday that it lost two million users in the last three months of 2015. Shares plummeted by 12% in trading late at night.

Twitter has 305 million active users by the end of 2015. In contrast, Facebook (FB, Tech30) has 1.6 billion. Google (GOOGL, Tech30) has eight products with over one billion users each. Even to Instagram surpassed Twitter in September, increased to 400 million users.

If Twitter (TWTR, Tech30) was able to generate sales effectively tweets sponsorship and partnerships, is growing at a snail's pace. It is still a relatively niche product that has not been able to expand its reach in the way they are his competitors.

New management, products, I have no plans and features do much to move the needle. Twitter's growth has stagnated and is nowhere close to turning a profit.


Twitter is aware of the problem and has launched a slew of new products to address the issue. In particular, Twitter announced Wednesday that it is testing a new algorithm that will change the chronological order of food, hoping to appeal more to casual users who are not frantically keeping up with thousands of tweets in real time.

In a periscope chat with analysts, Twitter CEO Jack Dorsey said the new feature of the timeline has shown "real promising development" in the involvement of users.

"We're going to perfect the main service we offer and make everything more intuitive," the Dorsey said. "There is an opportunity to fix broken windows and confusing aspects inhibiting growth. Thinking timeline is a big part of that. "

Meanwhile, the Twitter management is in turmoil. The revolving door of managers continues to rotate, and the company recently announced the product, engineering, media and HR managers go all green fields.

Dorsey said Wednesday that Twitter of management need to be modernized. Flushing CTO Adam Messinger given enhanced responsibilities, making more decisions about the flushing of the product. Dorsey said he hopes to beef up the team Messinger with a heavy recruiting effort in 2016.
He also said Wednesday that new Board members will be coming soon to the rescue.

Dorsey is a part-time CEO, sharing his time with the other company, Square (SQ). Annoys many investors who believe that Twitter needs a Chief Advisor of undivided attention. But Dorsey said the chat periscope that he has created a structure that "has worked very well," which will allow the flexibility needed to run the two companies. He said he is more active in recruiting for Twitter.

sales
Fourth quarter 2014: USD 479 million
Fourth quarter 2015: USD 710 million, 48%

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

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

Profit

Fourth quarter 2014: -125 000 000 dollars
Fourth quarter 2015: -90 million dollars, 28% improvement
Twitter continues to lose money. Although losses narrowed, it shows no sign of turning a profit.

Active customers

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

Twitter lost two million customers in the last three months of the year. Compared with a year earlier, Twitter customer base grew by only 6%.

The company reported reduced the number of emails sent to the dormant customers to try to get back on the service. The fourth quarter is also normally a weak quarter for customer growth.

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