Twitter’s Blended Fourth-Quarter Earnings Present Challenges Forward

Final yr, Twitter executives set formidable objectives for his or her firm, with hopes of attracting greater than 100 million new customers and doubling income by 2023. The final three months of 2021, nonetheless, confirmed the challenges the corporate should overcome earlier than it could hit its goals.

Twitter mentioned on Thursday that its income grew extra slowly than analysts had anticipated within the final quarter 2021, and the corporate predicted that it could report a loss within the present quarter. Nevertheless it added new customers, probably easing issues that it was having a tough time drawing curiosity in an more and more various marketplace for social media.

Twitter reported income of $1.56 billion within the last three months of 2021, a 22 % enhance from a yr earlier however decrease than analyst expectations. Twitter mentioned it earned $176 million in earnings, a 34 % decline from the year-ago interval. The corporate mentioned it had 217 million day by day energetic customers who see adverts, a 13 % enhance.

Twitter additionally introduced that its board had approved a $4 billion buyback of its inventory. The corporate plans to repurchase $2 billion of its shares on what it described as an accelerated timeline, with the remaining $2 billion to be bought over time. The plan follows an earlier buyback of $2 billion that was approved in 2020, though $819 million of that program remained unspent.

“It represents confidence in our technique and execution,” Ned Segal, Twitter’s chief monetary officer, mentioned of the share repurchasing plan. “We’re placing our cash the place our mouth is.”

Twitter has mentioned that it plans to develop quickly over the subsequent two years, reaching 315 million day by day energetic customers and $7.5 billion in annual income by the tip of 2023.

The corporate added a million day by day energetic customers in the USA within the fourth quarter, and 5 million customers internationally. Its whole income in 2021 was $5.08 billion, a 37 % enhance from the earlier yr.

Twitter’s inventory value swung wildly final week, when Fb’s mum or dad firm, Meta, mentioned that privateness modifications launched by Apple had dampened its promoting enterprise. Buyers considered Meta’s earnings report as a bellwether for the social media trade, however Twitter mentioned that Apple’s privateness modifications had a minimal influence on its promoting enterprise.

“Our sturdy 2021 efficiency positions us to enhance execution and ship on our 2023 objectives,” Parag Agrawal, Twitter’s new chief govt, mentioned in a press release. “We’re extra centered and higher organized to ship improved personalization and choice for our viewers, companions and advertisers.” Twitter’s Blended Fourth-Quarter Earnings Present Challenges Forward

Fry Electronics Team

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