Twitter just can't seem to rise to the occasion.
Twitter reached 313 million monthly active users in the quarter that ended in June, a gain of just three million users from the previous quarter. That's despite efforts to attract new users by adding more video streaming and better news curation features.
Without strong user growth, Twitter is now struggling to attract advertiser interest, causing sales to slow.
The social network reported sales of $602 million for the quarter, falling short of Wall Street estimates of $608 million.
Twitter is now projecting sales of $590 million to $610 million for the upcoming quarter, falling well below estimates of $682 million.
"We're seeing a continuation of the trends discussed last quarter with less overall advertiser demand than expected," the company said in a letter to shareholders.
Twitter stock fell by 10% in afterhours trading after the reports came out.
It's a poor report card for Jack Dorsey, the cofounder of Twitter who took over as CEO almost exactly a year ago - while continuing to serve as CEO of Square - with the hope of turning around the Internet company.
During his year-long journey, Twitter has seen its monthly active user base fall from 316 million to 313 million. So much for a comeback.
Once thought to be the next Facebook, Twitter is now getting beaten by younger services like Instagram, with more than 500 million users.
