NEW YORK (CNNMoney) – It is difficult to accept for Twitter fan base, but the social network is not popular enough to be a successful business. In fact, Twitter is losing customers.
The network reported Wednesday it lost 2 million users in the last three months of 2015. Its shares 12% in the Nasdaq sank after closing Wednesday.
Twitter had 305 million active end of 2015. In contrast users, Facebook has 1,600 million users. Google has eight products with more than 1,000 million users each. Even Instagram became Twitter in 2015, growing to 400 million users.
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While the social network has been effectively generate sales through of their sponsored tweets and alliances, it is growing at a slow pace. It remains a relatively small product that has not been able to expand to manage to have a similar success rivals.
A new administration, designs and tools have failed to move much business social network. Twitter’s growth has stagnated and is not even close to a profit.
Twitter is aware of the problem and has launched a series of new products to counter the problem. But it remains to be seen how much impact will have products such as Moments and Highlights users and customers.
On Wednesday, the network announced that it is testing a new algorithm that will change the chronological order of their updates, hoping that this may be more appealing to casual users who are not obsessed with keeping abreast of the thousands of tweets that are published in real time.
In an interview via Periscope an Analyst, Twitter CEO Jack Dorsey said his new feature to display a timeline in user profiles has a “very promising growth.”
“We will restructure our basic service and make it more intuitive,” said Dorsey. “There is an opportunity to repair broken windows and confusing issues that are inhibiting growth. We believe that a timeline is much of that, “added the CEO.
Meanwhile, Twitter’s management in a whirlpool. Unstable door executive continues to rotate, and the company recently announced that its product managers, engineering, media and resources will leave.
It is expected that the new members of the board of Twitter come to the rescue soon, although the social network did not announce changes to its Board with its quarterly report, as predicted by many analysts.
Meanwhile, rumors continue that Twitter will soon be for sale.
Sales
Twitter reported sales of $ 710 million for the fourth quarter of 2015, an increase of 48% over the fourth quarter of 2014, when they sold 479 million dollars.
It was not at all bad news in the last quarter of last year. In fact, Twitter reported record sales. The company continues to succeed in their advertising initiatives, reporting that it had 130,000 customers by the end of the fourth quarter of 2015, 90% higher than reported in 2015.
But the company said it expects sales to grow slowly in the current quarter. He predicted that the gain will be between 585 and 610 million for the quarter, well below what analysts polled by Thomson Reuters expect to get.
Active Users
For the fourth quarter of 2015, Twitter had 305 million users, down 1% compared to the third quarter of 2015, when it reported $ 307 million.
The network lost 2 million users in the last three months of 2015. Compared with a year earlier, the Twitter client base grew by only 6%.
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