The company missed Wall Street’s revenue estimates Thursday, reporting $717 million in revenue for the fourth quarter, just a 1 percent gain from the same quarter a year ago.
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The tech firm posted a loss of 23 cents per share, which was worse than the loss of 15 cents per share predicted by analysts surveyed by Bloomberg.
Twitter’s profit excluding certain items was $119m, or 16 cents a share, compared with the 12 cents per share analysts estimated on average.
“This focus, and this team, allows me and gives me a lot of confidence I can continue to focus on the meaningful things at both companies and we have the right prioritization in front of us”, he said on a conference call discussing Twitter’s fourth-quarter earnings.
Beyond discovering its core identity, the company said it also continued to grow daily active users for the third straight quarter. This could’ve been one good reason to a massive surge in numbers. Twitter recently reduced staff and an attempt to sell the company failed.
One figure that will give cause for concern among investors is a fall in advertising revenue in the fourth quarter, down to $638m from $641m in the same period of previous year.
Revenue growth fell for the tenth straight quarter. It was 14 percent growth in its “data licensing and other revenue” that saved the quarter from being an ever bigger disaster. It also lost both its chief operating officer and chief technology officer, increasing the load on Mr Dorsey, whose time is divided because of his other job – as chief executive of Square. Periscope, Twitter’s live-video streaming app, continues to become more integrated in the main Twitter app, and the company continues to invest in live streaming programming deals. This has been made possible due to Twitter’s efforts of publicizing itself as a prominent news source that can effectively turn into a global TV network. Recently, Twitter has been experimenting with new features, like a non-chronological timeline and breaking-news alerts, which have helped boost engagement and time spent on the platform. Its live-stream of the Golden Globe Awards red carpet in partnership with Dick Clark Productions drew approximately 2.7 million unique viewers.
Its weaker underlying profit expectations for 2017 added to the pre-market stampede from its stock by investors as they were more than half the figure Wall Street was expecting, according to a survey of industry analysts by FactSet. The stock closed at $18.72 on Wednesday.
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Twitter was down by up to 10.2% prior to the opening bell on Thursday morning.
