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Though Wall Street has grown increasingly concerned about user growth at Twitter, CEO Dick Costolo told CNBC on Wednesday the company remains on the right path and he's not worried about users finding new platforms.
During an interview on CNBC's "Squawk on the Street " a day after the social media company reported quarterly earnings, Costolo said each net new user the site gains demonstrates as much engagement as older users.
Still, Costolo said Twitter needs to bridge the gap between "awareness and engagement" by simplifying timelines and the mobile sign-up process. Costolo attributed year-over-year declines in engagement to changes the company has made to its user interface.
"I'm really happy with engagement," Costolo said. "I don't see any issue there."
Twitter beat Wall Street's estimates when it reported earnings after-the-bell, shares tumbled in morning trading Wednesday. Concerns have been mounting over slowing user growth at the micro-messaging service, where monthly active users hit 225 million. In contrast, rival social media network Facebook has 1.2 billion users.
The social media company saw its net losses grow more than $100 million in the first quarter, and its operating earnings and revenue beat Wall Street estimates.
Twitter share prices have lost a third of their value this year, and many analysts have been cutting price targets.
—By CNBC's Jeff Morganteen. Reuters contributed to this report.