Jack Dorsey appointed as new CEO of Twitter on Monday is full of forced optimism. The first sign: promotion awkwardly identified by the company as “permanent CEO” in several tweets and corporate presentations. Considering the brutal policies in major technology firms, not to mention the rugged realities of human mortality, there is nothing “permanent”.
But it’s understandable. The embattled board of Twitter was definitely trying to convey a new message of stability at its helm. However Dorsey, who splits his time to take control of Twitter as an imminent public offering ready by Square, faces anything but a stable base.
Twitter is a troubled company significant on user growth, with a possibly inflated action and a series of tough challenges that would test even the most experienced executive. Here are three of the biggest.
1. Increase (or recover) the user base
This is the most obvious. Last quarter, Twitter reported 316 million monthly active users, an increase of 3 percent compared with the previous quarter. Sixty-six million were in the United States and 250 million worldwide. Internal growth was boring with a 1.5 percent increase over the previous quarter.
The most dramatic number, however, is showing how many people have come to Twitter and abandoned. Peter Stabler, an analyst at Wells Fargo, recently wrote of the need “to revert to that with which we believe that hundreds of millions of users or intermittent captives were tied.” According to some estimates, this number lost reaches up to one billion people. And the user base is sinking compared to Facebook, which is only two years older. In a similar stage in their life cycle, Facebook celebrated the threshold of one billion users
2. Solving the problem of Lena Dunham
Last month, the creator of Girls said in a podcast I thought about leaving Twitter to take away the hate . caustic Their concerns come to the heart of one of the main problems and Twitter Social Networks like: anonymity engenders a stinking human behavior All social networks with aliases , like MySpace, 4chan, Reddit and Digg, have dealt with this problem in the past. Other social networks that require the use of real identities, such as Facebook, have kept largely the same. And while Instagram, owned by Facebook -the main rival of Twitter-does accommodate pseudonyms, it is predominantly a visual medium, with strict rules on the use of obscene images. Earlier this year, the former CEO of Twitter, Dick Costolo, admitted that he felt the company had not done enough to combat abuses.
The star of Girls, American television series about a group of twenty-somethings living in New York will broadcast on HBO, published in your Twitter account an image in underwear, which caused cruel insults to his image, so the actress had decided to leave the social network . Later he decided to stay out of respect for his followers, even if someone else handle your account.
3. Justify the price of the shares, while the advertising business is built
Twitter currently trading at 9.9 times sales, compared with 6.55 times of Google, the father of Alphabet and Facebook 17.5 times.
Twitter shares fell 22 percent this year, some investors see the stock as a good buy. (The shares have risen 5.7 percent on Monday after the appointment of Dorsey.) The problem is that Twitter still lose a lot of money -137 000 000 dollars in the last trimester and has an accumulated deficit 1.87 billion dollars over its lifetime, according to its latest results. With a similar rate of 2 billion dollars in revenue per year running, Facebook was obscenely profitable. That was Google.
an investor meeting last November, Twitter’s executive team projected a revenue growth of 35 percent to 62 percent in the coming years. That’s ambitious. Dorsey, with its COO and Adam Bain, newly promoted, will have to compete with the brightest stars of Instagram, Facebook and snapchat for the attention of the directors of marketing and advertising dollars on smartphones. With user growth stagnating, large consumers will see more ads, which could degrade the quality of service
There are other challenges, such as:. Stabilize product leadership and the launch of products successfully extend the appeal of Twitter; retain employees in a hotly competitive contracting environment; relax the 140-character limit of Twitter without degrading the proportion of the service; and the integration of its acquisitions Periscope and Vine to make it more visual. All this will be difficult, especially for a part-time general manager. But if Dorsey overcomes the odds and succeed, perhaps you will place his name among the greats of all time in Silicon Valley.
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