Twitter’s share price dipped more than 11 per cent after hours on Tuesday despite the social media company releasing results that far outstripped its own and analysts’ expectations.
The company posted revenue of $502 million, up 61 per cent on last year and way above expectations around $480 million. Twitter is still yet to make a profit as it continues to invest available capital in expansion. It posted a loss of $136.7 million, down slightly from $144.6 million last year.
While Twitter founder Jack Dorsey said this showed good progress in monetising the service, he was not happy with user growth figures. Twitter’s average monthly active users were 316 million for the second quarter, up 15 per cent year-on-year.
“We are not satisfied with our growth in audience,” Dorsey said. He added that in order to realise Twitter’s full potential, the company must simplify its service to deliver Twitter's value faster and better communicate that value to shareholders.
Shares were down 11 per cent to $32.35 in after hours trading following Dorsey's comments, wiping the equivalent of $2.75 billion off the value of the company.
Dorsey is back at the helm as interim CEO after former CEO Dick Costolo stepped down at the beginning on July. His comments spooked investors and contributed to the tumbling share price.