Skip to main content

Twitter’s subpar earnings raise questions about acquisition, Dorsey’s future

twitter dorsey trump jack
Jack Dorsey/JD Lasica/Flickr
Has Twitter CEO Jack Dorsey shipwrecked the beloved platform he helped create? Following another quarter of disappointing results, which saw the company miss revenue expectations, all eyes are now trained on the Twitter chief. Will he abandon ship? Or, as so many analysts have suggested, shop around for an acquisition or merger?

Nestled within Twitter’s letter to shareholders there were some glimmers of hope. The company’s revenue grew 20 percent year-over-year to reach $602 million, although it still came in below Wall Street’s expectations of $607 million.

Related Videos

As was the case in the previous quarter, Twitter’s advertising is partly to blame. Despite seeing ad revenue hit $535 million, an 18 percent increase year-over-year, Twitter claims that it saw “less overall advertiser demand than expected,” a worrying trend that could continue into the third quarter.

Regarding the future, Twitter’s outlook has consequently taken a hit, with the company expecting revenue to be in the range of $590-610 million. That’s well below analysts’ expectations of $670 million. Wall Street is reportedly shocked by the overall figures, which represent Twitter’s slowest quarterly revenue growth since the firm went public.

Dorsey can’t have been too surprised by speculation mounting over a prospective Twitter buyout. Faced with the question, he remarked that the platform is a “service of importance” with “so much farther to go.” The statement aligns with the general message in the company’s letter to shareholders, which fundamentally asserts that Dorsey’s vision still needs time to come to fruition.

The strategy, as outlined by Twitter, includes its big bet on live-streaming, which Twitter believes can bring in lucrative video advertising dollars. A new marketing campaign, launched yesterday, also puts the emphasis on the platform’s live news credentials. Combined with its focus on real-time video, Twitter evidently believes that it can attract users by encouraging spectatorship over participation. Other upcoming changes, that will affect Twitter’s more active users, include an uptick in notifications in regards to breaking news events.

The quarter itself, on the other hand, saw little signs of life in regards to user growth. Twitter added 3 million users to reach a total of 313 million monthly active users, a pallid increase of just 3 per cent year-over-year.

In comparison, Twitter’s rivals (including Facebook, Instagram, and Snapchat) have gone from strength to strength, particularly in regards to mobile advertising revenue, and user growth. Twitter is asking for patience, but after a year at the helm, many feel Dorsey has failed to deliver. One thing is for sure, time is no longer on his side.

Editors' Recommendations

Twitter’s downfall made me look for alternatives, but they just made it worse
Twitter app on the OnePlus 10T.

Twitter is the only social network I’ve ever stuck with and enjoyed, but this has changed since Elon Musk took ownership of the company. The influence he has on it and its content has altered the posts I see, the people who regularly contribute, and the entire platform’s future. While some will welcome the changes, it has made Twitter less enjoyable for me — and prompted me to look for an alternative.

But the ones I’ve tried are simply not good enough and don’t have the same appeal that has kept me returning to Twitter for more than a decade. The shambles around Twitter and its alternatives has ended up making me rethink the way I feel about social media entirely, and perhaps for the better.
Trying to understand Mastodon

Read more
Hive Social is my favorite Twitter alternative, but that’s not saying much
iPhone 14 Pro in hand showing off profile page on Hive Social app

Ever since Elon Musk bought Twitter, it seems that the once-favorite social media site has just been going down in flames. It’s a sad sight to see — fake news and misinformation running rampant from paid “verified” accounts, restoration of formerly banned accounts (they were banned for good reason), and so much other stuff that I just can’t keep up anymore. With all of these changes, there’s been a rise in alternatives to Twitter, like the incredibly popular Mastodon.

I prefer something simpler, like the new Hive Social that has recently made waves. Think of Twitter and Instagram, and what you would end up with if you combined the two. There’s also a little dash of Myspace in there, as you can even add some music to your profile page. I’ve been poking around on Hive Social since I joined a week ago, and while I’ve been enjoying my time there, I also noticed a few things along the way.
Hive reminds me of the early days of Twitter
OnePlus 10T Andy Boxall/Digital Trends

Read more
Twitter attempts to sort out verification system with new badges
A lot of white Twitter logos against a blue background.

After weeks of chaos that marked Elon Musk’s first month in charge of Twitter, the man himself said the platform’s suspended verification system will relaunch on December 2. And it’ll be markedly different than before.

Musk said in a tweet (below) that starting on Friday, companies will begin receiving a gold check mark, while government accounts will receive a gray one. Meanwhile, individuals who pay for Twitter Blue, whether or not they’re a prominent figure, will receive the traditional blue mark.

Read more