Twitter Inc. has been working as a public company since 2013. The Company growth is increasing day by day on the user base. Although the company is growing, but the revenue is declining for the last two years. The share price of the Twitter stock is $14 per share and the growth rate at 10%.
In the last quarter of the year 2016 the user base growth rate was 11% and now the revenue is going decline as in the same quarter the revenue drop out by 1%. In the same year, the growth rate was 7% and in the previous quarter, the rate was 5%. Now the Twitter has the 14% growth rate that is noticeable.
The growth of the user base is increasing, but the company isn’t profitable status. The Twitter loses the $62 million that is almost the 23% of the total revenue earned. The twitter officials said at a news platform that:
“We”re proud of our performance in Live after just 6 months – last quarter alone we streamed more than 800 hours of live premium video and reached 45 million unique viewers, an increase of 31% from the previous quarter,”
The investors saying that the company is not earning the revenue due to the spend the massive amount of the advertisement. The other reason can be the shifting of the investors to the other services like Facebook-owned Instagram and other popular services.
Jack Dorsey, Twitter CEO said that “We’re delivering on our goal to build a service that people love to use, every day, and we’re encouraged by the audience growth momentum we saw in the first quarter. While we continue to face revenue headwinds, we believe that executing on our plan and growing our audience should result in positive revenue growth over the long term.”