Twitter Inc (NYSE:TWTR) has Growth Issue

Jack Dorsey, co-founder and the present interim CEO of Twitter Inc (NYSE:TWTR) came full force in his first earnings calls with investors on Tuesday. Talking candidly during live-stream through Twitter owned Periscope app, Jack did not celebrate the company’s second quarter results that had exceeded investor expectations.

In fact, he talked about the shortcomings that his company had. This tirade did kill the joy of stock gain but it surely helped build the trust with investors, something which Twitter Inc (NYSE:TWTR) needed citing its past dwindling results.

Jack stated that the product announcements so far made by Twitter Inc (NYSE:TWTR), had not made the expected impact on increasing the company’s audiences and this was unacceptable. He was also of the opinion that the company had not yet aligned the company completely with regard to its strategy.

Jack’s debut call with the investors was much appreciated by the analysts as he had not taken the earlier interviews very seriously. With Square Inc., another of the mobile payment companies co-founded and run by Dorsey filing to go public, they expect him to be regularly speaking to his investors.

Commenting on his approach, analysts from different agencies and companies stated that Dorsey spoke directly and honestly and this would be good for the company. However, there were a few who still thought that there wasn’t much in the call to read into.

Twitter Inc (NYSE:TWTR) had gone public in November, 2013 and since then had tried to boost its credibility at Wall Street as its results were not very encouraging. Investors were a worried lot as they were given different explanations regarding the social media’s potential and metrics. However, Tuesday’s approach was better and much liked by the investors as it was a cohesive one as he explained them about the visions, missions, strategies, and challenges faced by his company. The approach was more honest, which instantly, adhered to the investors.

On the questions regarding the appointment of a permanent CEO, Dorsey stated that he would give the investors an update when there was something substantial. Earlier, Dorsey had dodged similar questions regarding his heading Twitter Inc (NYSE:TWTR) or sticking around at Square.

TWTR was downgraded to a $20 target at HEFFX

Twitter, Inc. (Twitter), incorporated on April 19, 2007, is a global platform for public self-expression and conversation in real time. The Company offers products and services for users, advertisers, developers and platform and data partners.

Products and Services for Users

It enables a way for people to create, distribute and discover content. It enables a user on Twitter to create a tweet and a user to follow other users. Users are followed by other users without requiring a reciprocal relationship, which is an asymmetric follow model. The public nature of the Twitter platform allows it and others to extend the reach of Twitter content beyond its properties. Media outlets distribute tweets beyond its properties. Advertisers use its promoted products, which are pay-for-performance to promote their brands, products and services. It enables its advertisers to target an audience based on various factors, including a user’s interest graph. Its promoted products are incorporated into its platform as native advertising. Media outlets, including the BBC, CNN and Times of India use the Twitter platform for content distribution. Vine is a mobile application that enables users to create and distribute short looping videos of up to six seconds in length. Users on Vine follow other users, re-broadcast content to their followers by re-vining, comment on videos and embed videos on Websites. It offers users the option to capture, edit and share videos up to 30 seconds in length directly within the Company’s application.

Products and Services for Advertisers

Its promoted products enable its advertisers to promote their brands, products and services, and extend the conversation around their advertising message. Its promoted products consist of promoted tweets, promoted accounts and promoted trends. Promoted tweets appear within a user’s timeline or search results. Promoted accounts appear in the same format and place as accounts suggested by its Who to Follow recommendation engine, or in tweets in a user’s timeline. Promoted accounts provide a way for its advertisers to build a community of users interested in their business, products or services. Promoted trends appear at the top of the list of trending topics for a day in a particular country or on a global basis. It features one promoted trend per day per geography. Its technology platform and information database enables it to provide targeting services based on geography, interests, keyword, television conversation and devices for advertisers to promote their brands, products and services. Its platform also allows customers to advertise across the mobile ecosystem across the user lifecycle. MoPub, its mobile-focused advertising exchange, combines advertisement serving, advertisement network mediation and a real-time bidding exchange into one monetization platform. Advertisers also set up campaigns directly on ads.twitter.com to run across the Twitter Publisher Network. Purchasers of advertising services monitor their advertising campaigns through campaign management, real-time analytics and advertiser application program interface (API).

Products for Platform Partners and Developers

It provides a set of tools, public APIs and embeddable widgets that developers use to contribute their content to its platform, syndicate and distribute its content across their properties. Its platform products include Twitter Cards, which enable developers to attach content and functionality to tweets and have that content appear wherever a tweet is displayed throughout Web and mobile applications; The Twitter public API, which allows platform partners to integrate the Twitter content and follower relationships into their applications; Twitter for Websites, which is a set of tools that enable platform partners to integrate Twitter content and functionality into their Websites, and Fabric, which is a platform offering modular software development kits that help developers build applications and allows them to tap into Twitter’s sign-in systems for identity verification.

Products for Data Partners

It offers subscription access to its public data feed for partners who access data beyond its public API, which offers a limited amount of its public data. Its Gnip branded products and services offer data sets to allow developers and businesses to utilize its public content.

The Company competes with Facebook, Google, LinkedIn, Microsoft, Yahoo, Sina Weibo, LINE, Kakao and AOL.

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