This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-37789415
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Twitter to cut jobs as revenue growth slows | Twitter to cut jobs as revenue growth slows |
(35 minutes later) | |
Twitter is cutting 9% of its workforce - about 350 jobs - after reporting a sharp slowdown in revenue growth. | |
In the three months to September, revenues rose 8% to $616m. That was better than forecast, but lower than the 20% rise in the previous quarter. | In the three months to September, revenues rose 8% to $616m. That was better than forecast, but lower than the 20% rise in the previous quarter. |
The number of average monthly active users rose 3% to 317 million. | The number of average monthly active users rose 3% to 317 million. |
Last month, Twitter hired bankers ahead of a possible sale, but bids from potential suitors such as Google and Salesforce failed to materialise. | Last month, Twitter hired bankers ahead of a possible sale, but bids from potential suitors such as Google and Salesforce failed to materialise. |
Shares in Twitter fell 7% earlier this month after Salesforce - considered to be the most likely bidder - said it had walked away from talks. | Shares in Twitter fell 7% earlier this month after Salesforce - considered to be the most likely bidder - said it had walked away from talks. |
Jack Dorsey, chief executive, said he saw a "significant opportunity to increase growth" as the company improved the platform. | Jack Dorsey, chief executive, said he saw a "significant opportunity to increase growth" as the company improved the platform. |
Live video | |
"We have a clear plan, and we're making the necessary changes to ensure Twitter is positioned for long-term growth," he said. | "We have a clear plan, and we're making the necessary changes to ensure Twitter is positioned for long-term growth," he said. |
"The key drivers of future revenue growth are trending positive, and we remain confident in Twitter's future." | "The key drivers of future revenue growth are trending positive, and we remain confident in Twitter's future." |
Twitter's user base remains less than a fifth of Facebook's and is also fewer than Instagram, the picture app that Facebook owns. | |
The company hopes that live video will attract more users and recently struck a high-profile deal to show National Football League games in the US on Thursday nights. | |
The site will also introduce "meaningful updates" next month in a bid to better protect users from abusive content - an issue that Twitter has been widely criticised about | |
Profit goal | Profit goal |
Twitter remained heavily in the red in the quarter with a $102.8m net loss, down from a $131.7m loss in the same period last year. | |
Chief financial officer Anthony Noto said Twitter aimed to become profitable in 2017: "We intend to fully invest in our highest priorities and are de-prioritising certain initiatives and simplifying how we operate in other areas." | |
However, Wedbush analyst Michael Pachter said "management appears unfocused and complacent" and that Twitter remains too complicated for most users despite attempts to simplify the experience. | |
Advertising revenue rose 6% to $545m in the quarter, while data licensing and other revenue jumped 26% to $71m. | |
International revenue soared by more than a fifth to $242m, growing more than in the US, where revenue was largely flat at $374m compared with the same period last year, | International revenue soared by more than a fifth to $242m, growing more than in the US, where revenue was largely flat at $374m compared with the same period last year, |
Twitter shares, which have fallen by a quarter this year, rose 4% to $18 in pre-market trading in New York. | Twitter shares, which have fallen by a quarter this year, rose 4% to $18 in pre-market trading in New York. |
The company had 3,860 employees as of June. |