Twitter shocks with stagnant user growth

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Twitter report causes concern

Twitter has informed investors that it has had little user growth and a drop in engagement over the final quarter of 2013.

In the first earnings call since going public, chief executive Dick Costolo went on to discuss a series of changes that may be made to Twitter over the year to prevent further stagnation, attempting to alleviate some of the concerns currently felt by investors.

During the conference call, he said: "We don't think we need to change anything about the characteristics of our platform, we simply need to make Twitter a better Twitter".

He also made reference to tweaks previously made to the social network which have helped to boost user engagement, such as including images and videos in the timeline and displaying conversations in threads.

Upcoming Twitter changes

Costolo suggested that an alternative to the chronological timeline could be introduced, where topics would be used to organise content. He also proposed the inclusion of a feature to help new users find their friends more easily.

The CEO stressed that Twitter will thoroughly research user behaviour prior to making any changes, meaning that an upturn in user growth could be slow to take place.

Natalie Booth, head of search at theEword, has said: "It has been suggested that the slow evolution of Twitter is responsible for the stagnant user growth and drop in engagement. It will be interesting to see what changes are made across 2014 and whether they will have a positive result."