Twitter Tumbles as Pace of Revenue Growth Slows

Twitter Tumbles as Pace of Revenue Growth Slows
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Twitter tumbled the most in almost four months after quarterly revenue and a profit outlook missed analysts’ estimates, showing that efforts to woo more advertising have yet to pan out despite an effort to boost usage of its site, according to Bloomberg.

Even as Twitter sits at the center of daily media reports, given U.S. President Donald Trump’s frequent blasts, the company has had trouble persuading advertisers to spend more money on the platform as fewer people join. In the fourth quarter, Twitter added 2 million new users, bringing the total number of people who log in monthly to 319 million. Still, it was the fewest new recruits in at least three quarters.

“While we may not be meeting everyone’s growth expectations, there’s one thing that continues to grow and outpace our peers: Twitter’s influence and impact,“ CEO Jack Dorsey said on a call with analysts. “It’s the reason we’re all here fighting so hard for the service and company we love. It’s been hard, it will continue to be hard, and it’s all worth it.“

It may still take a while before that translates to higher earnings. Twitter said says it expects $75 million to $95 million in adjusted earnings before interest, taxes, depreciation and amortization in the current quarter, well below the $188 million average analyst estimate. The company didn’t provide revenue forecasts.

Fourth-quarter revenue was $717 million, missing the $740 million average analyst estimate, according to data compiled by Bloomberg. Sales growth of 1 percent slowed dramatically in the period from the 48 percent gain a year earlier, the company said in a statement. Twitter’s fourth-quarter profit excluding certain items was $119 million, or 16 cents a share, compared with the 12 cents per share analysts estimated on average. The company’s net loss widened to $167 million, or 23 cents a share. Twitter has said it is aiming for profitability this year.