Putting an end to all the speculation, Jack Dorsey confirmed his position as the permanent CEO of Twitter, while presiding over Square Inc’s operations as well. A ray of hope for Twitter that has been witnessing consistent losses since its IPO in 2013?
Dorsey has been appointed over other potential candidates including Adam Bain, now Twitter’s COO and Anthony Noto, who has been appointed as the CFO.
While Dorsey plans to “make Twitter easy to understand by anyone in the world, and give more utility to the people who love to use it daily;” there has been hesitancy around how this will function owing to Dorsey’s double responsibilities.
Twitter has been subjected to volatility with a number of high profile exits (including that of Dick Costolo) in the last few weeks.
The micro blogging website was under scrutiny for weak consumer acquisition growth numbers as compared to its arch rival Facebook. While the number of Twitter users in 2015 increased reaching to 288 million people, the rate of growth dropped from 23 per cent in 2014 to 20 per cent early this year.
To rectify the same, Twitter came up with updates such as seamless direct messaging, quote tweets and made its user policies available in local languages with the aim of educating users. However, no major growth has been reported since the developments.
Another concern to dominate Dorsey’s responsibilities is the lack of profit turnaround at Twitter’s end.
Twitter reported 61 per cent hike in revenues in 2015, with a much narrower net loss window. While Twitter’s revenue doubled in the last few years, they failed to turn into profits, which have been investors’ major concern.
With Jack Dorsey’s appointment, Twitter hopes to regain control of a more or less losing battle in the highly competitive social globe. Will the move be fruitful? Time shall tell.