Twitter Inc (NYSE:TWTR) started as a small company seven years back and has emerged out to be one of the biggest micro-blogging sites with 230 million monthly active users all over the world and 2,300 employees in offices in San Francisco, New York, London, Dublin and Sao Paulo. The company issued its Initial Public offering (IPO) in November and is now valued at $35 billion.
Financials still not strong enough for Twitter
Despite the success so far, the business still needs to mature as the site has just 53 million active users in the United States, which is considerably less than active users for Facebook Inc (NASDAQ:FB), and only around one-fifth of the country’s total number of internet users, says a report from Mashable by Seth Fiegerman
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Also, Twitter has seen a significant decline in the global user growth both on a quarter over quarter basis and year over year. Though revenue is increasing, and has almost doubled this year compared to fiscal 2012, the company is still not profitable. For the first nine months, Twitter posted a loss of $133.9 million compared to a net loss of $79 million in 2012.
Twitter Inc (NYSE:TWTR) has taken significant steps in modifying and bringing new features to enhance the user experience on mobile and desktop along with focusing more on the conversation and visual content in the stream. However, the changes did not receive the expected appreciation from some of the Twitter’s oldest and most active users. The blogging site is still not confident in infusing changes and bringing new features, and even tried to take away some of these recent changes immediately after their release due to negative feedback.
To improve on features to woo new users
Twitter has issued the IPO this year, and is now entrusted with investors funds, which it would have to channelize effectively. Additionally, investors will also remain focused on the performance of the company that has just become public. Twitter is making efforts to redesign its visuals and user interface in the coming year. Features like pictures, articles, TV clips, ecommerce features are expected to become be more prominent in Twitter, in coming time. Twitter would redesign its profile page to include more information and direct messages will be given more importance.
Twitter Inc (NYSE:TWTR) will retain its old user base and would also try to allure new users by explaining and innovating the services. In fact, the company has already made a move in the same direction as in November, Twitter launched a new page describing its services and information about the social network though the page has not been updated recently.
“I definitely think we are going to see Twitter focusing on user acquisition, and develop ways to increase engagement with the existing user base and to attract new users,” Clark Fredricksen, VP at eMarketer, told Mashable.