Twitter has reported its slowest growth in quarterly revenue since going public in 2013 as the company faces intensifying competition from fast-growing competitors such as Snapchat and Instagram.

The microblogging service said on Tuesday its monthly active-user base increased to 313 million in the second quarter from 310 million in the first quarter.

The company’s net loss narrowed to $107.2 million (€97.5 million), or 15 cents per share, in the second quarter ending June 30th, from $136.7 million, or 21 cents per share, a year earlier.

Revenue rose about 20 per cent to $602 million.

The slow growth of the site’s user base will continue to worry the company and its shares price fell heavily in after-hours trading on Tuesday.

In a letter to shareholders detailing the latest earnings, the company said: “We are seeing the direct benefit of recent product changes, and with disciplined execution, we believe we can drive improved engagement and audience growth over time.”

In the last six months, Twitter has been attempting to reposition itself as a platform for breaking news and live video after struggling to compete with services such as Facebook and Instagram for users.

Current events

Twitter rolled out a video ad this week that showed it as the place to go for live news, updates and discussion about current events. The company has also pushed further into live video and streaming and has signed deals with Major League Baseball and the NBA to revive user growth.

Twitter forecast current-quarter revenue of $590 million-$610 million, well below the average analyst estimate of $678.18 million. Excluding items, the company earned 13 cents per share, topping the average analyst estimate of 10 cents.

Twitter has also committed to improving its safety after repeated criticism over how it handles abuse. “This is our second quarterly update after laying out our long-term strategy and priorities,” the company said in a statement.

– (Reuters/PA)