San Francisco, Europe Brief News – Twitter has announced that it fell short on the set goals for Quarterly advertising revenue and user growth. The overall achievement indicates that it’s almost there to extract benefits.
Twitter also mentioned that they have made significant progress towards their goal of crossing 315 million users and $7.5 billion in annual revenue by the end of 2023.
In the share market, San francisco based company `twitter” took a leap as its shares jumped up more than 8% after the results came out.
The company has been showing keen interest in the projects like audio chat rooms and newsletters to grow as a platform and attract more new users and advertisers.
The number of users who see ads grew by 13% to take the total to 217 million in the fourth quarter of 2021. It was supposed to cross 218.5 million as per the set goals.
It has also announced a fresh $4 billion share repurchase program which has replaced the previous $2 billion program. The efforts are being made by the company to take twitter platform to another level.
Jesse Cohen, senior analyst at investing.com said “ Twitter’s stock buyback plan is helping investors overlook the company’s relatively weak results and outlook”.
Twitter’s advertising revenue for the fourth quarter has grown 22% year by year to reach to 1.41 billion, missing short by expected $1.43 billion.
Twitter has captured 6 million users during the quarter but for twitter to hit its target of 315 million by the end of 2023, Twitter will be required to add over 12 million each quarter during the next two years.
Boosting user activity
The company has predicted first-quarter total revenue to be of $1.17 billion to $1.27 billion. The midpoint of that range is lower than the wall street’s average target of $1.26 billion.
Chief financial officer Ned segal said “ The user growth was in line with Twitter’s guidance in the previous Quarter, and the twitter was working to boost user activity by promoting people to follow topics they are interested in during the sign up process”
He further added that the demand for advertising was not that huge during the last couple of weeks in the fourth quarter compared to the beginning of holiday season.
The prediction for company full year 2022 revenue is to increase in the low to mid 20% range.
