Twitter execs’ criticism of company is ‘refreshing’

SAN FRANCISCO — Critics have long lamented that Twitter is difficult to use and has had trouble defining itself, which is why it has not expanded its audience. Add the social network’s interim chief executive, Mr Jack Dorsey, and its chief financial officer, Mr Anthony Noto, to the list of critics.

After reporting quarterly sales that topped estimates, Mr Dorsey and Mr Noto struck a critical tone, saying user growth would not improve until Twitter reaches a mass market — something that would take a mixture of product improvements and marketing. The company’s efforts so far have had minimal success, they said.

“We have not communicated why people should use Twitter nor made it easy for them to understand how to use Twitter,” Mr Noto said during a second-quarter earnings call with investors.

“People around the globe know of Twitter, but it’s not clear why they should use Twitter,” Mr Dorsey added. “This is unacceptable and we’re not happy about it.”

While Wall Street dumped the stock in after-hours trading on Tuesday, the frank comments by the two executives gave analysts hope the company would start addressing the long-standing problems.

“We appreciate the candour,” said Mr Victor Anthony, an analyst with Axiom Capital Management.

Growth has stagnated since Twitter’s IPO in November 2013, while rival applications, including WhatsApp and Facebook Messenger, drew hundreds of millions more people.

User numbers rose by only two million over the past three months to 304 million, although Twitter said an additional 12 million people in developing countries used text messages to gain access to the service.

Revenue, most of which comes from advertising, was US$502 million (S$685 million), compared with US$312 million a year ago. The company posted a net loss of US$137 million, as it spent heavily on stock compensation to attract and retain employees. In the same quarter last year, it posted a loss of US$145 million. Agencies