Quoted: Twitter CEO Dick Costolo stays course, says he has board’s support

“The board and I are aligned, that’s the only thing that matters.”

— Dick Costolo, CEO of Twitter, in response to recurring questions about whether he’s on the hot seat. In an interview on CNBC’s “Squawk Box” Wednesday morning, the day after the social-media company reported results that failed to meet Wall Street expectations, Costolo said he has “thick skin,” is committed to the company’s long-term goals, and that Twitter “is the most fun company in the world to run.”

Twitter has lost more than $1 billion since it went public in late 2013, and questions about its management have come up now and again.

Shares of San Francisco-based Twitter are down about 5.5 percent today, to just under $40, after plunging 18 percent Tuesday. The company missed first-quarter sales expectations and lowered its outlook for the current quarter’s revenue. Also responsible for the sharp decline in Twitter’s stock was that the results were inadvertently released early, about an hour before the markets closed. Nasdaq says it’s at fault.

Although some analysts are lowering their target price for Twitter stock, some are mentioning points of optimism.

Canaccord Genuity reportedly said it was “encouraged by 74 percent revenue growth, driven by both users and monetization.” While quarterly sales fell short of expectations, they were up 74 percent from the year-ago period. Also, Twitter added 18 million users from the previous quarter; it now reports 302 million monthly active users. But: Twitter CFO Anthony Noto warned during the earnings call of user growth being off to a slow start in April.

Other sources of positivity: Twitter on Tuesday announced an advertising partnership with Google, which will give users of Google’s DoubleClick platform the ability to buy ads on Twitter. It also recently struck a deal with Google on search.

Costolo also seemed to have high hopes for Periscope, the company’s live-streaming app, which attracted 1 million users in its first 10 days. He called Periscope complementary to Twitter’s other video app, Vine.

 

Photo of Dick Costolo from Bay Area News Group archives

 

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  • HornE4Hillary

    What an arrogant Dick…Costolo.

 
 
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