Twitter CEO, Jack Dorsey, officially steps down, CTO Parag takes over

Today, Twitter’s CEO, Jack Dorsey officially resigned from his position as Chief Executive Officer, effective immediately. After leaving, Twitter Chief Technology Officer (CTO) Parag Agrawal will replace Dorsey, as CEO. Despite his resignation, Dorsey will continue to serve as a member of Twitter’s board of directors until his term expires at the 2022 shareholders’ meeting. Jack Dorsey claims that he is leaving Twitter because he wants the company to not be co-founder led. Furthermore, the co-founder and former CEO of Twitter claims that he wants the company to be the most transparent in the world. 

Dorsey has been the CEO of Twitter for the past 16 years. Maybe it’s time for the company to change leadership. A few hours before his official resignation, there were reports that Dorsey was going to step down. It does not seem like the former CEO had any issues with the company. Perhaps, he is leaving to pursue new challenges.

For the new CEO Agrawal, he will have to achieve Twitter’s aggressive internal goals. The company said earlier this year that its goal is to have 315 million monetizable daily active users by the end of 2023 and to at least double its annual revenue by 2023.

Twitter did quite well under Dorsey

Generally, Twitter’s finances have been great under Jack Dorsey. The company’s quarter to quarter financial reports have been quite good. Back in July, Twitter reported on its work in the second quarter of the current fiscal year. The company recorded significant growth in key areas. The company’s revenue for the three-month period is $1.19 billion. This is a 74% year-on-year increase from its $683 million revenue from the same period of last year. The company’s advertising revenue jumped 87% year on year to $ 1.05 billion.

Furthermore, its licensing and other revenue streams generated a total of $ 137 million, up 13% from the second quarter of last year. At the end of the quarter, the company posted a net income of approximately $ 66 million, or 8 cents per share. For comparison: a year earlier, losses were recorded at the level of $ 1.38 billion, or $ 1.75 per share.

According to the results of the second quarter, the daily audience of active monetized Twitter users was about 206 million users. A year earlier, this figure was equal to 186 million subscribers, and in the first quarter of this year – 199 million. In the third quarter, the company expects to receive revenues from $1.22 to $1.3 billion. Its operating losses, calculated in accordance with generally accepted accounting principles (GAAP), could be up to $50 million.