Twitter still losing money despite having over 302 million users

According to inventor and interim CEO and Co-founder of Twitter, 39 year old Jack Dorsey, who wrote a dispatch software at the age of 15, that is still used by some taxicab companies even today,  “We strive for accuracy and fairness”. “ Make every detail perfect and limit the number of details to perfect”.

Twitter which turned nine years old in March 2015, has over 300 million users but is still losing money, as it fails to attract much needed advertising revenue.

In the fast-paced world of social media, Twitter  has just reported its first quarter earnings report, which although shows over 302million users, up  18 per cent from this time last year, and a 14 million increase from the previous quarter, but the company is failing attract advertising revenues.

The company’s revenue for Q1 was $436m which is 74 percent increase year over year, but still below the $440m forecast, recording a net loss of $162m for the first three months of 2015.

Twitter is trying to improve is main product  Twitter highlights, a new home page and different ways to send direct messages and also investing in video products like Vine, Periscope and  its own 30-second offering. At the same time it failed to deal with abusive users which remains a sticking point for the company.

Twitter has acquired TellApart, a marketing tech company that previously worked with Facebook’s ad campaign.  It also has a new partnership with Google’s DoubleClick platform that will offer more refined as performance metrics to marketers.

According to Dick Costolo  ex-CEO Twitter,  who left the post in July 2015, the Periscope livestreaming service gained over a million users in its first ten days, satisfying the niche in the market, as more are tuning into broadcast over the web than ever before. Costolo said that Periscope broadcasters can easily share their streams on twitter to get a larger audience. “They can share, watch and be active participant in immersive live video experience directly from their smart phones. It is transporting you into people’s lives.”

If they are not  careful,  the likes of Google could pounce on Twitter and add it to their protfolio.