Twitter Earnings: Posts Revenues But Decline In User Growth

Posted: Feb 5 2014, 6:42pm CST | by , Updated: Feb 5 2014, 6:46pm CST, in News | Technology News

Twitter Earnings: Posts Revenues but Decline in User Growth
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In its first quarterly earnings report as a public company, Twitter both exceeded and fell short of expectations.

A bigger-than-anticipated surge of fourth-quarter revenue meant that the social messenging platform was able to report a very small profit, of 2 cents a share, marking the first time it’s ended a quarter in the black.

But while Twitter is becoming more effective at monetizing the users it has, with $242.6 million in revenue for the quarter, it seems to be having trouble growing the overall size of its audience. Twitter’s total of 241 million monthly active users represents only an increase of 9 million from the previous quarter.

Considering the massive worldwide attention its November IPO received, that figure could have been much higher. That, at least, seems to be the judgment of the stock market, which marked TWTR down more than 10% following the earnings release.

Also worrisome was a 7% quarter-to-quarter reduction in the number of timeline views showed to users. What’s more, Twitter hasn’t made much progress squeezing more value out of its international users, with non-North American revenue accounting for just 27% of the total.

You might say Twitter’s results are a photographic negative of the picture Facebook presented in its early months as a public company, when it claimed booming user growth but had yet to persuade many marketers that it was an effective ad vehicle, particularly in mobile. (Those days are well in the past now.)

We’ll see if Twitter CEO Dick Costolo can put a sunnier spin on the results during the earnings conference call, which is scheduled to begin in a few minutes.

Source: Forbes

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