News Worms
News Worms


Twitter suffers slowest revenue growth since flotation

Twitter suffers slowest revenue growth since flotation

The challenge for Twitter is that while it is trying to reinvent its user experience in order to get more sign-ups-or to turn occasional users into dedicated users-it is also having to reinvent its ad business at the same time because it is clearly not working.

Twitter shares plunged after it reported losses widened amid a drop in ad sales, dashing hopes United States elections and Donald Trump's tweeting frenzy would boost earnings. The tech firm did grow its daily active users by 11 percent from the same period past year, but did not provide the user numbers.

While it may be the mouthpiece of United States president Donald Trump, the Q4 earnings for Twitter have revealed it is still not very profitable. The service has 319 million average monthly active users, compared to Facebook's 1.86 billion. That's the shiny new metric.

Twitter has been unable to soak up ad dollars at the rate investors had hoped for and is not innovating at the same rate as rivals Facebook and Alphabet's Google, said Sheridan. The beat on the bottom line wasn't enough to dispel fears about Twitter's inability to monetize its user base, which caused revenue growth of only 0.9% - its worst performance in the company's history.

Twitter said that advertising revenue edged slightly lower to $638 million in the latest period, with mobile advertising revenue accounting for 89% of that total.

Twitter said it continues to work toward achieving profitability in 2017. It was the company's slowest quarterly revenue growth since it became a publicly listed company in November 2013. Excluding certain items, fourth-quarter earning was $119 million, or 16 cents a share, beating analysts' estimates of 12 cents per share.

The company's shares fell as much as 10 percent to $16.81 in premarket trading on Thursday.

In his opening remarks on the company's earnings conference call, Twitter CEO Jack Dorsey tried to strike a positive tone, saying the company had been through a "transformative" year in 2016, and that it was seeing strong growth in usage. "It could be very hard for an event or a single person to drive sustained growth". And there's still more the company can do to make using Twitter as easy as looking out a window and seeing what's happening. "That said, revenue growth will continue to lag audience growth due to the sales cycle, and could be further impacted by the escalating competition for digital advertising spending and our efforts to re-evaluate our revenue product feature portfolio". Twitter said the figure rose by 11% from the prior-year period.

"Because the effects of this transition could have an impact on the company's revenue performance, there is a wider range of potential revenue outcomes", management explained in its third-quarter shareholder letter when discussing fourth-quarter guidance.

follow

editors' picks

February 10, 2017
Cognizant Plans a Deal with Elliot and Appoints Directors to Discuss Dividend
It is widely believed that the more practical proxy for the market's expectations is analyst's consensus price estimates. The analysts suggest a profit of 86 cents on each share, but Cognizant predicts it to be 83 cents in the 1st quarter.

February 09, 2017
Kellyanne Conway apologises for 'Bowling Green Massacre' references
The list included many attacks covered extensively by CNN and other news outlets. President Trump has not said or tweeted one public word about this.

February 09, 2017
Putin rival in critical condition after being poisoned - again
Several critics of the Kremlin have died unexpectedly in recent years , with killings outside Russian territory given parliamentary approval in 2006.

February 09, 2017
Leicester not in crisis - Ranieri calm after vote of confidence
Ranieri said the player had been trying to help the situation by taking collective responsibility for the club's poor run of form. But maintaining its spot in the English Premier League is what it's really all about now, and the pressure is mounting.

February 09, 2017
Thierry Henry gives his verdict on Wenger's Arsenal future
In the end, there weren't too many outgoings last month, but here are TWO that really should have left Arsenal in January... Former England defender Sol Campbell has blamed Arsenal failings this season on a lack of strong personalities on the pitch.

February 09, 2017
Brazil Challenges Canada At WTO Over Bombardier Loans
The Canadian government has approved $372.5m in repayable programme contributions for Bombardier "to foster Canadian innovation and strengthen the aerospace sector".

February 09, 2017
This Atlanta-area student has a good reason for being tardy
These moves mean the Falcons will follow their Super Bowl appearance with significant staff changes on both sides of the ball. Atlanta lost its quarterbacks coach Matt LaFleur to the offensive coordinator position with the Los Angeles Rams.

February 09, 2017
Toronto set to get lashed by snow and freezing rain
After going from an icy morning to a spring-like afternoon on Wednesday , the weather is set to take another U-turn Thursday . Minor coastal flooding is possible around 9:30 a.m., but at that high tide the winds are still picking up.

February 09, 2017
Neil Gorsuch Supreme Court Nomination Will be a Bloody Fight
Of the 10 senators, Sherrod Brown of OH and Tammy Baldwin of Wisconsin have said they'll oppose Gorsuch, at least in a final vote. Unlike some Senate Democrats who have already said they will oppose Trump's nominee, both have said they will wait to decide.

February 08, 2017
Ginsburg Calls for Change to the Electoral College
What makes for a meaningful life? I went to class about 8:30 a.m., and I came home at 4:00 p.m., that was children's hour. Asked about several other topics, Ginburg said that if she were "queen", she would abolish the death penalty nationwide.