Twitter announced today that CEO Dick Costolo will be stepping down from the post of CEO. The microblogging company said that Costolo will remain on the Board while Jack Dorsey has been appointed as interim CEO, effective July 1.
Costolo has been heading the company since 2010 and guided the company through its IPO in 2013. The company has been struggling with making money ever since going public and has come under criticism from investors. The fact that Facebook continues to dominate the social media landscape, both financially and in terms of numbers has also caused many to questions the long-term business value of Twitter.
In its Q1’15 result, Twitter lowered its FY 2015 expectations after posting a Q1 net loss of $162 million. At that time, Costolo had attributed this to lower-than-expected contribution from some of the company’s new products.
Twitter lowers FY 2015 expectations post Q1 net loss of $162 million
Twitter says it has 302 monthly active users, up 18 per cent YoY. According to eMarketer, Twitter will account for just 6.8 per cent of total US digital ad spend share by 2017 as compared to 26.9 per cent for Facebook though still putting it in third spot behind Google with 11.1 per cent.