Twitters earnings fell in the fourth quarter
Software

Twitter’s earnings fell in the fourth quarter

Twitter announced its financial results for the fourth quarter: profits fell, user base growth did not meet analysts’ expectations, and only revenue was generally in line with forecasts. The company also announced its intention to buy back its own stock for $4 billion.

Image source: Fotomix / pixabay.com

Image source: Fotomix / pixabay.com

According to the official report, the number of monetized daily active users (mDAU) increased by 2.84%, reaching 217 million people versus 218 million expected by analysts. Twitter’s net profit was $182 million, although analysts predicted $290 million a year ago, it was $222 million. The only indicator that met the expectations of experts was revenue, which increased in the fourth quarter $1.57 billion in 2021, up 22% annually from $1.29 billion. Analysts forecast $1.58 billion.

The company attributed the lack of strong profits to expenses, which rose 35% year-over-year last quarter and totaled $1.4 billion on marketing. The company will also spend $4 billion to buy back its own stock — the last time such a program was run in March 2020, it then cost $2 billion.

Image source: edar/pixabay.com

Image source: edar/pixabay.com

Twitter released its report just a week after the meta report (owns Facebook, Instagram and WhatsApp) – then the company’s shares plummeted and its market cap fell by more than $300 billion in a week also stated that this factor will cost the company another $10 billion this year. However, Snap, suffering from the same innovation, said literally the next day that the impact of Apple’s innovation had already begun to weaken, resulting in a explosive rise in shares.

According to Twitter, the impact of Apple’s changes on the company’s revenue hasn’t been high, as about 85% of the service’s revenue comes from brand advertising, which is much less dependent on the iOS privacy policy. The company also announced that it was renaming “data licensing and other revenue” to “subscriptions and other revenue,” a move that reflects the sale of the MoPub service and the platform’s bet on Twitter Blue subscriptions, which give users additional functionality , including access to exclusive content and the ability to install NFTs images as your profile picture. The subscription is currently only available in the US, Canada, Australia and New Zealand. Twitter hasn’t disclosed the number of active followers, but CFO Ned Segal said the company “really admire what we see now”.

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Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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