Friday, Sep 29, 2023

Twitter user numbers fall short as it reports $221m annual loss

Twitter user numbers fall short as it reports $221m annual loss

The social media platform's disappointing results are the first since Jack Dorsey stepped down as chief executive - and come after Facebook's sub-par performance sent owner Meta's shares into freefall last week.

Twitter has become the latest social media giant to disclose disappointing user numbers as it reported an annual loss of $221m.

The San Francisco-based company said its measure of "monetisable daily active users" - those who see ads on the platform - rose by six million to 217 million over the last three months of 2021.

That fell short of Wall Street estimates that the total would reach 218.5 million.

Parag Agrawal took over in November.

Fourth quarter ad revenues of $1.41bn also failed to meet analysts' $1.43bn target and Twitter's forecast for first quarter sales was slightly below par too.

But Twitter cheered investors by announcing a $4bn share buy-back programme, sending shares as much as 8% higher though the gains later evaporated and they ended 2% lower.

The quarterly results are the first since Parag Agrawal took over as chief executive from Twitter's co-founder Jack Dorsey in November.

They follow a disappointing set of numbers from Meta - the owner of Facebook, Instagram and WhatsApp - last week, which prompted Meta's share price to collapse by a quarter.

Those results had revealed the first fall in user numbers in Facebook's 18-year history as well as a squeeze on ad revenues and pressure from social media rivals such as TikTok.

Twitter, with a market value of $30bn, is a relative minnow compared to Meta, which is worth more than $600bn. Meta's Facebook platform has more than 1.9 billion daily users.

The results are the first since Jack Dorsey quit

But like bigger tech stocks, Twitter has found its share price under pressure recently as investors fret about the prospect of US interest rate hikes that make bets on future returns from growing companies look less attractive.

Twitter's shares have fallen 12% so far this year.

In its latest results, the company said it had made "meaningful progress" towards its goal of reaching 315 million users and $7.5bn in annual revenue by the end of 2023.

It said user growth should accelerate in the US and internationally this year.

Twitter has been pursuing projects such as audio chat rooms and newsletters to attract users and advertisers but analysts had expected faster signs of progress.

It will need to double its growth rate to 12 million users per quarter if it is to achieve its 2023 goal.

Mr Agrawal said: "I see a strong urgency to improve our focus and execution but also a lot of confidence in our strategy and our team."

The plan will apparently involve a big splurge on bonuses.

Stock-based compensation of $630m in 2021 was up from $475m the year before and is expected to climb to $900-925m this year.

Twitter's annual revenue of $5.08bn was 37% up on 2020 and is expected to grow in the "low to mid 20% range" this year.

Its full-year loss for 2021 was tied to a $766m charge resulting from a lawsuit settlement over allegations it had misled investors.


Related Articles

Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
Swedish Embassy in Baghdad Engulfed in Flames Amidst a Firestorm of Protests
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner