Twitter Inc has problems that seem to have no end. It is struggling to add users, and now, according to a report from Reuters, it is losing them in one of it’s long time strongholds, Indonesia. This is an example that illustrates how the micro-blogging firm is challenged even in markets it once dominated.
Losing in important market
Twitter never discloses country figures, but based on the data from Global Web Index, Indonesia and Mexico have most active users among the 34 markets that the research firm monitors. But, the analysts and users believe it masks a deeper shift as Indonesians shift towards rival services due to changing tastes, culture and politics.
In the past two years, the proportion of active Twitter users in Indonesia have declined by 10%, dropping to about one-third of the Internet users, as per the Global Web Index.
Enda Nasution, a blogger, entrepreneur and Twitter user with about 200,000 followers told Reuters, “Unless Twitter makes changes or there’s some new exciting things on Twitter that can’t be found on other platforms then I don’t think people are coming back to Twitter.”
A Twitter Inc spokesman refused to comment on the data, saying he had not seen it, but said younger people in major markets such as Indonesia and India were eager users. The spokesman said that the firm was expanding in Indonesia, and for adding content and services it was working with airlines, bank and celebrities.
Twitter at a key decision point
Twitter recently released its fourth-quarter earnings report that showed firms user base have stopped growing, which can be seen as a crisis. Another problem is that the firm is either losing money continuously or only modestly profitable depending on how one counts its employees’ stock options, says a report from Vox.
For Twitter Inc , the only thing to cheer was the impressive revenue growth, and if it continues to do so, then the firm will get to see steady improvement in its profits over time. However, the investors, who bought the firms shares back in 2013, were looking for a Facebook style growth that was explosive in nature.
Such an environment, call for important decisions. Should CEO Jack Dorsey go for the “fundamental changes in how the service works” to grow the user base. Such changes might not go well with the current users. Or, should Dorsey try to do best with the resources he has “keeping current customers pleased and focusing on optimizing revenue and trimming costs in pursuit of a decent near-term profit?” says the Vox report.
At 11.10 am EST, Twitter shares were up 9% at $15.60. Year to date, the stock is down almost 33% while in the last one-year, it is down over 67%.