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  • 07.26.16

Twitter says its plan is working, asks for patience

The results for Twitter’s second quarter disappointed Wall Street: Analysts expected revenue of $607 million, rather than the $602 million the company actually reached. Its guidance for the third quarter—$590 million in revenue—also falls short of the $681 million hoped for by analysts.

But when it comes to Twitter usage metrics, the company can point to some signs of progress. Twitter made many tweaks to the service in recent months, most notably ditching the strictly chronological timeline in favor of using an algorithm to push relevant tweets to the top. Though change-averse Twitter users squawked about that move, it may be paying off. Twitter doesn’t release many hard numbers about usage, but the company says it saw increases in monthly active users, daily active users, daily active minutes, tweet impressions, and searches—some of which were up by double digits.

Some of Twitter’s biggest changes are yet to come and will arrive in the form of live video streams of NFL, MLB, and NHL games. But even if video is a hit with consumers, it will take a while before it pays off financially: As Twitter pointed out in its earnings call, it will stream only two football games in Q3. And it readily acknowledges there’s plenty of work left to do.

“There’s so much further to go in terms of our strength, not only as a service of importance but also a company and business of importance,” said CEO Jack Dorsey on the call. “We’re focused right now on what matters most.”HM