Has Twitter hit a wall? It seems that way based on its just-released financial report for Q4.
It shows a slight decline in the number of monthly average users since September: It dropped by 2 million to 305 million, not including SMS Fast Followers. The company says, though, that “we’ve already seen January monthly actives bounce back to Q3 levels. We’re confident that, with disciplined execution, this growth trend will continue over time.”
But that news plus a lower-than-expected forecast for its financial performance in the current quarter seem to have eclipsed the company’s better-than-expected earnings in Q4.
After gaining 4% during the day, Twitter’s share price swung in post-market trading from down 11% to down 1%. The stock has lost close to 69% of its value during the past 12 months.
CEO Jack Dorsey told analysts in a call that he’s determined to improve the results, including making Twitter “a leader in live streaming video” through its Periscope service.
He called 2016 “a year of additions” with efforts to make Twitter easier to use for those who don’t want to learn its collections of symbols, shortcuts and protocols.
The company reported a net loss of $90.2 million, a 28% drop vs the year-end period in 2014, on revenues of $710.5 million, up 48.3%. The revenue number topped the consensus forecast of $709.9 million. Adjusted earnings at 16 cents a share beat forecasts for 12 cents.
Twitter says it expects revenues to come in as high as $610 million in the current quarter. Wall Street was looking for $633 million.
Earlier today Twitter unveiled changes in its timeline. It says that they will “help people see tweets that are important to them” from people they follow most closely, instead of ordering all results in reverse chronological order. Users can turn off the feature if they want.