Twitter shares fall

elepantsTwitter shares fell more than 11 percent in extended trade after the microblogging outfit said 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 that the figures were unacceptable and he was unhappy with them.  He would have said more but it would have gone over the number of characters he was allowed to use.

Twitter has 304 million core users in the second quarter, up from 302 million in the prior quarter.

But Twitter’s struggles to increase its audience worries investors. The company has to keep growing to interest them.

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

Chief Financial Officer Anthony Noto said that he did not expect to see continued growth in monthly active users until Twitter reaches the mass market.

Twitter shares lost more than 11 percent. All this seems a bit unfair. Total revenue rose 61 percent to $502.4 million. Excluding the impact of a strong dollar, revenue rose 68 percent.

Advertising revenue rose 63 percent to $452 million. Excluding the impact of the dollar, advertising revenue was up 71 percent. Twitter estimated full-year revenue of $2.20 billion-$2.27 billion, up from its previous forecast of $2.17 billion-$2.27 billion.

Chief Executive Dick Costolo abruptly announced in June that he was stepping down, which given the figures is starting to make a bit of sense.

Two other executives have also gone. Todd Jackson, a product manager, will move to Dropbox, and Christian Oestlien, vice president of product management, will join YouTube.