“Ultimately, we failed to overcome the chicken-and-egg issue between application developers and user adoption of those applications,” Caldwell wrote. “We envisioned a pool of differentiated, fast-growing third-party applications would sustain the numbers needed to make the business work. Our initial developer adoption exceeded expectations, but that initial excitement didn’t ultimately translate into a big enough pool of customers for those developers.”
On the other hand, the app thatattempted to take on — Twitter — isn’t exactly doing so well either. Anemic user growth and equally disappointing revenues have had many investors concerned with the social media site for quite some time, and it’s unclear as to what the future of the 140-character company will be at this point either.