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adding marketing clients, it doesn't expect to see "sustained, meaningful" growth in monthly users for a considerable period. Users of the main application rose by just 2 million from the prior quarter -- a gain of less than 1 percent. "Investors demand a re-acceleration of user growth," said Paul Sweeney, an analyst at Bloomberg Intelligence. "We did not see that this quarter to any notable degree." The stock dropped as low as $31.90 in late trading. Before the report, shares of San Francisco-based Twitter rose 5.3 percent to $36.54 at the close in New York. They've gained 1.9 percent this year. CEO Search Former Twitter CEO Dick Costolo was replaced this month on an interim basis by co-founder Dorsey, who also runs Square Inc., a mobile-payments company. Twitter is conducting a search for a permanent CEO, and has ruled out Dorsey as long as he stays full time at Square. On Tuesday, Dorsey said there was no update on the search for a new leader. When asked if he wanted the job, he declined to answer. "I'm not focused on answering that question," he said in an interview. "I want to make sure I'm doing whatever it takes to make Twitter successful." He also dodged a question about whether he would remain CEO of Square. In the second quarter, revenue rose 61 percent to $502.4 million, the social-media company said Tuesday in a statement. That exceeded analysts' average projection for $481.9 million, according to data compiled by Bloomberg. Twitter's net loss narrowed to $136.7 million, or 21 cents a share. Profit excluding certain items was 7 cents, compared with the 4 cents analysts estimated. Bigger Rivals On a conference call, executives quashed any initial optimism generated by the report by confronting Twitter's underlying problem: It's much smaller than the competition. The company today reported 316 million monthly users, while Facebook Inc.'s social network has 1.4 billion. Twitter recently started counting feature-phone users in emerging

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Independent research project. Not affiliated with the U.S. Department of Justice, FBI, any government agency, or Anthropic. All analytical text on this site is AI-generated (Claude, Anthropic) and iteratively fact-checked against source documents, but may contain errors. Verify all claims against linked EFTA sources before citing.
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