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Twitter Results Fail to Inspire the Marketplace

Jack Dorsey TwitterAlready under fire from users because of proposed over changes in the algorithm to the timeline, Twitter reported a $521.03 million net loss for 2015 this week, with the loss for the fourth quarter weighing in at $90.24 million.

According to Twitter, it had 320 million average monthly unique users, the same number as it had in the third quarter. This has left some media analysts questioning its ability to grow while investors have even questioned its future as users jump ship to other social media platforms.

On the revenue front, Twitter reported year-on-year growth of 58.0% to $2.22 billion for the year while revenues in the fourth quarter amounted to $710 million. Advertising revenue weighed in at $641 million in Q4, an increase of 48.3% year over year.

With founder Jack Dorsey now back as interim CEO since June, the company has been experimenting with different ways of making the site more engaging for users while at the same time stepping up its efforts to increase monetisation. This has led to changes in how it displays tweets on its home page and customizing them to individual users, with a particular emphasis tweets that advertisers pay for.

According to some analysts, Twitter is also facing a brain drain following an exodus of some top executives last month. This in turn has led them to question the company’s ability to reignite growth.

 

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