Twitter Announces Its Number of Monthly Average Users Grew Slowest Since 2013

Shares of Twitter Inc's fell over 11% in extended trade on Tuesday after the microblogging company revealed that its number of monthly average users grew at the slowest pace since it went public in 2013.

Jack Dorsey, who stepped in as interim chief executive on July 1, said on a call with analysts, that they are not at all satisfied with the results.

The microblogging company said that it had 304 million core users in the second quarter, up from 302 million in the prior quarter. Twitter's present situation to increase its audience worries investors, who are focused on the company's growth potential, and the latest figures did little to reassure them.

The data on users overshadowed the company's second-quarter earnings and revenue, which exceeded expectations, and its bullish projections for future revenue, which exceeded expectations, and its bullish projections for future revenue.

Chief Financial Officer Anthony Noto said, "We do not expect to see sustained meaningful growth (in monthly active users) until we start to reach mass market. We have not clearly communicated Twitter's unique value. And as result non-users continue to ask, Why should I use Twitter?"

Total revenue of the company rose 61% to $502.4 million. Advertising revenue rose 63% to $452 million. Excluding the impact of the dollar, advertising revenue was up 71%.

In addition, the company's net loss narrowed to $136.7 million, or 21 cents per share, in the second quarter ended June 30 from $144.6 million, or 24 cents per share, a year earlier.

The company also announced departure of its two other executives, Todd Jackson, a product manager, who will move to Dropbox, and Christian Oestlien, vice president of product management, who will join Google Inc unit YouTube.