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Twitter Inc. revealed a net loss of $511.5M at Q4’13
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On its first quarterly earnings report yesterday since Twitter Inc. went public in November 2013; the company posted chalked up revenues of $243 million up 116% year-after-year. An admirable figure than analysts had anticipated, the company also revealed a net loss of $511.5 million widened from $8.7 million. A lot of it went into doling out for R&D and sales and marketing.

Shortly after the announcement, the young company’s shares plummeted more than 18% in after-trading hours but they’re still double from its initial IPO price of $26. The fourth quarter report also revealed that Twitter was at a snail’s pace of user growth, and the signed up users seem to be using it less which is not as rosy as the Wall Street had expected.

Twitter net loss


Twitter said it expected a modest full-year 2014 revenue of $1.15 billion to $1.2 billion and revenue for the first quarter of $130 million to $240 million.

During the company’s earning call, Dick Costolo also stated that they’re intending on changing the slope of growth curve without altering the moral fiber of the social media platform.

Costolo also indicated a few revenue generating alternatives

  • Make it more interactive by providing improved tools for organizing content around topics or keywords rather than the time the content was posted.
  • A boost in areas like Retweets, DMs and Search
  • Make Direct Messaging service a more prominent tool as well as include making photos appear within the Twitter Mobile app.

Twitter is at an advantage as analysts believe that it is innately well-positioned for advertisers than its rival Facebook. However, investors are concerned with the growth of the company as the famous apologetic fail whale made a comeback on Wednesday during the company’s earning call. Many analysts blame Twitter’s overpriced stock price for its current performance Analysts have projected $1.14 billion in revenue Q1’14 sales of $215 million in Q1’14.

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