Twitter disappoints investors again
Twitter’s troubles worsen as Q4 2015 shows stalled monthly user growth, but confirms new Twitter features
It's a bad start of the year for Twitter, as it saw no new user growth in its fourth quarter and warns investors not to expect any immediate change.
The troubled social networking site shares fell in after-hours trading as its revenue forecast for the current quarter missed analysts' expectations. Furthermore, shares have declined more than 50% since CEO Jack Dorsey returned to Twitter last July.
Twitter released in a statement: "We saw a decline in monthly active usage in Q4, but 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."
It reported earnings of 16 cents per share and revenue of $710m. Twitter said it expects between $595m and $610m in revenue for the first quarter, compared to the estimates of $629m.
Still, revenue was up 48% year-over-year despite stalled user growth, the report added.
Since Dorsey returned, his aim is to shake things up with ‘significant changes', such as increasing the character limit from 140 to 10,000 characters, introducing a new safety council to manage complex harassment and safety issues and also focus on live event and video, which aims to benefit advertisers.
Most recently, Twitter confirmed it has introduced a new feature to its timeline, where algorithmically, the ‘best' tweets will be pushed to the top of the users timeline feed.
Dubbed "show me the best tweets first", it will be presented in reverse chronological order, and all other tweets will show in the following section, again in reverse chronological order. The new feature will be available on the web and both iOS and Android platforms.
Twitter had 320m monthly users in September 2015, but it had only grew from 284m in the last quarter of 2014 to 307m a year later. However the service is competing with Facebook's 1.59bn users, and Instagram 400m each month and Snapchat with at least 100m every day.