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Twitter dives after update disappoints
[SAN FRANCISCO] Twitter shares took a fresh hit Tuesday after its quarter update showing more losses, and sluggish growth in revenues and the user base of the social media platform.
Shares were down nine per cent in after-hours trade after the report, which showed Twitter's loss narrowed to US$107 million in the second quarter from US$136 million a year earlier.
More significantly for investors, the number of monthly active users edged up to 313 million, up three percent from a year ago and only slightly more than the 310 million in the past quarter.
Revenue rose 20 per cent from a year earlier to US$602 million but lagged expectations.
Twitter chief executive Jack Dorsey said of the results, "We've made a lot of progress on our priorities this quarter." Mr Dorsey added that "we are confident in our product road map, and we are seeing the direct benefit of our recent product changes in increased engagement and usage."
A Twitter co-founder, Mr Dorsey returned to the CEO job last year in a bid to boost growth and user engagement, with its shares slumping on concerns that it is failing to keep pace in the fast-growing world of social media.
Twitter has never posted a profit since its keenly anticipated stock market debut in 2013 but has been ramping up its advertising efforts to bring in revenue.
Advertising revenue totaled US$535 million, an increase of 18 per cent year-over-year, with mobile accounting for 89 per cent of that.
Revenues from the United States amounted to US$361 million, up 12 per cent from a year earlier and international revenue grew 33 per cent to US$241 million.