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| Twitter has 217 million daily active users |
Twitter Inc reported fourth-quarter earnings that fell short of analyst estimates for profit, revenue, and user growth.
Revenue was $1.57 billion, versus expectations of $1.58 billion. The number of monetized daily active users was 217 million vs. 218.6 million expected.
The company issued revenue guidance of between $1.17 billion and $1.27 billion for the next quarter, while analysts expected about $1.26 billion.
Twitter also announced a new $4 billion share buyback program. Half of that amount will be used for quick share buybacks, the company said, with the rest repurchased over time.
Despite the decline in user numbers, the CFO said the previously announced target of 315 million users in the fourth quarter of 2023 and revenue of at least $7.5 billion in 2023 remained unchanged.
"Revenues for the fourth quarter were affected by the slowdown in advertiser spending during the last two weeks of this period," he added. But spending recovered early in the first quarter.
This is the first report from new CEO Parag Agrawal following Jack Dorsey's resignation in November.
Agrawal, who was previously a CTO, was a key figure in the company's creation of a decentralized social media protocol through Project Bluesky.
The new CEO inherits Dorsey's ambitious internal goals, which include increasing the number of daily active users monetizing Twitter to 315 million by the end of 2023.
Twitter failed to meet analyst expectations
Agrawal said the company remains confident that it will be able to meet its 2023 target thanks to the significant increase in and response to new account signups.
He explained that the company is seeing a 25% annual increase in new accounts or reactivated subscriptions and a 35% annual increase in daily subscriptions.
The increase in new registrations is due to strategies such as b. Require users to log in when accessing Twitter from different platforms.
Twitter reports follow meta and snap reports. Both pointed out some economic challenges, such as B. The impact of supply chain disruptions on advertisers' budgets.
Companies have reported mixed effects with Apple's privacy update, making it difficult to target ads on iPhones.
Twitter said last quarter that the impact of Apple's changes was weaker than expected. The company also said this quarter that the impact was modest in the fourth quarter.
"We believe our product improvements will help reduce our impact on Twitter," the company wrote. Even realigning revenue offerings with iOS privacy-related changes requires additional time, effort, and resources.