In an effort to improve user experience and push growth, Twitter Inc (NYSE:TWTR) is evaluating the possibility of introducing new mobile apps exclusive of its current messaging platform. Apart from its messaging service, new apps are seen as a viable means to entice new users to the service, which is competing for user share with other social networking sites such as Facebook Inc (NASDAQ:FB).
Twitter Inc (NYSE:TWTR)’s current platform limits users to a broadcast of 140 character posts, in contrast with the unlimited messaging and posting experience that users can get from its rival site Facebook. To account for this gap in user experience, Twitter is planning to roll out its own feature of functional private messaging service, as well as an instant timeline element that will provide new users with content without them having to search or follow particular users.
Investors are positive about these planned new features, which will make Twitter Inc (NYSE:TWTR) friendly and easier to use. Shares of the networking site rose to 7.45% after the company announced the upcoming changes, which is seen as an important factor for sustainable growth.
In its first analyst day on Wednesday, Twitter Inc (NYSE:TWTR) has tackled important issues that sought to clarify the company’s position regarding its users, system innovation, e-commerce, and profitability. The networking site currently has 248 million monthly active users (MAU), and Twitter is looking into monetizing these users on or off platform. It has also started to use direct response ads starting in September, wherein a buy button allows users to buy goods advertised within the networking system. In terms of profitability, the company estimates a 35% to 40% long EBITDA margins. The third quarter has seen the company sustain a loss of $174.5 million, almost double the earlier loss of $64.6 million. It reported an adjusted earnings of $7 million, amounting to a penny per share.
This article has been written by Nonito Guntan.