After strong results from Facebook and Snap this quarter, all eyes were on Twitter to see if the other big, publicly listed social network could deliver a hat trick of growth. If we judged the company on financials alone, Twitter did not disappoint.
The company reported Q4 revenues of $909 million (up 24 percent on a year ago) and diluted earnings per share of $0.33 with a net income of $244 million. On average, analysts had been expecting revenues of $859.5 million on an EPS of $0.25.
However, Twitter’s achilles heel remains user growth. It has now slumped to 321 million monthly active users, falling short even of estimates that were expecting a decline. Shares are equally slumping in pre-market trading, down more than seven percent so far.
The overall picture may have also not been helped by weak guidance. The company said it expects Q1 revenues to be between just $715 million and $775 million, with operating income between $5 million and $35 million. Even with Q1 seasonal declines, this is a big drop from Q4, also a jump up on financials from a year ago. Twitter estimated that capex for …read more
Thank you Source: Social – TEch crunch