Even while its top-line growth surpassed its prior guidance, its user growth came in way below market expectations. In addition, the company expects its user growth levels to stay depressed in the coming quarters. With over-70% growth in the ad business (in FX-neutral terms) during the quarter, the company’s troubles with respect to direct response ads seem to have ended (at least for now). However, these earnings make us quite skeptical on the future of the micro-blogging platform. In addition to the management uncertainty (which remains due to the ongoing search for CEO), it remains to be seen whether the new efforts being undertaken will help in accelerating new user growth on the platform.
Vía Forbes Real Time http://ift.tt/1M1faiq