Twitter has posted revenues of $502m for its second quarter, an increase of 61 percent year on year, and far ahead of estimates for Q2 of $470m to $485m.
However, interim CEO and co-founder Jack Dorsey said he is not happy with the growth level, and that the company is still underperforming.
“Our Q2 results show good progress in monetisation, but we are not satisfied with our growth in audience,” he said, before outlining some of the areas where Twitter could improve.
“In order to realise Twitter’s full potential, we must improve in three key areas: ensure more disciplined execution; simplify our service to deliver Twitter's value faster; and better communicate that value.”
Dorsey expanded on these concerns during an earnings call to discuss the results, noting that the major problem is translating the power of the brand into more users.
“People all over the world know of the power of Twitter, but it’s not clear why they should harness it themselves. [It's] an answer to why Twitter must be articulated clearly and felt everywhere throughout the service,” he said.
“We are advancing this marketing communications work as fast as possible and ensuring it’s coordinated with the simplification of our service.”
Twitter now has 316 million average monthly users, an increase of 15 percent year on year from 308 million. However, the majority of these new users are ‘SMS Fast Followers’, who receive text alerts without being registered on Twitter.
Furthermore, Twitter posted a net loss of $136m despite the strong revenue growth, although this was lower than the $144m loss in Q2 2014.
Shares in the company fell by as much as 13 percent in after-hours trading.
Twitter also touted its move to autoplay videos, gifs and Vines on the site as a major new product offering, which should appeal to advertisers wanting to promote video advertising to certain users.
Twitter broadcast its earnings call live over Periscope, the firm's new live-streaming video service, although the firm did not discuss how it will make money from the service.
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