Twitter CEO Dick Costolo’s decision to step down from his position, announced Thursday, comes as the social media network faces enhanced pressure to show investors it has a technique for growth — but never expect any radical changes.
Jack Dorsey, co-founder of Twitter, will step into his old part of CEO on an interim basis productive July 1 as Twitter’s board searches for a permanent replacement.
Though a leadership transition could infuse new energy into the corporation, Dorsey stated in a get in touch with with investors on Thursday he does not “foresee any modifications in strategy or direction.”
With 302 million monthly active users, Twitter has tremendous reach but has lagged in attracting and retaining new customers, who in turn entice firms to advertise on Twitter and drive income.
“The chance is completely massive. The intention is to surely bring it to absolutely everyone around the planet,” Dorsey said. “If we construct a product persons like and value, advertisers and users will follow.”
Nate Elliott, a principal analyst at Forrester tweeted about the change, noting that Twitter need to “innovate or grow to be irrelevant.”
Why did Twitter need transform? It is not very good at serving either customers or marketers appropriate now. Innovate or come to be irrelevant.
It’s some thing Costolo wanted investors to know Twitter was performing.
At its very first ever “analyst day” conference last November, Costolo shared his vision for assisting Twitter grow and find new strategies to engage its audience.
Amongst the changes that have been introduced due to the fact then are a extra seamless video experience within tweets, the potential to direct message a number of people today and a “what you missed” function to make positive users see the most relevant tweets.
An instant timeline function has also been added for new users as a way to support them really feel additional engaged with Twitter from the begin — and to hopefully retain them coming back to the website.
Standing ovation for @dickc. Thank you. pic.twitter.com/5V6lraFuHT
Two new products, Fabric and Periscope, had been also introduced this year. Dorsey mentioned a lot more products are in the pipeline for later this year and he does not anticipate any delays due to the leadership transition.
As a committee vets internal and external candidates for the best position, Dorsey stated it’s crucial whoever requires the reins is “a person who makes use of and loves the product in every single single way.”
“Regardless of all we have achieved, the firm nonetheless has huge unmet prospective,” he said.
Twitter sought to give reassurance to shareholders in a statement that stressed the company’s second quarter revenue outlook to be in the variety of $470 million to $485 million.