source: Tech Xplore
Twitter reported its fourth quarter earnings on Thursday, February 10. The report consisted of an overall view of the earnings of the company as of 2021. It mentioned the 13.2% decrease in its adjusted earnings of 33%, each share. They claimed to be at par with ‘Zacks Consensus Estimate’.
The Report Highlights:
Evidently, the shares of the company had seen a rise on the report and remained so during the revenue call. However, it subsequently fell 2% by the closure of trading Thursday.
The company’s report presented next quarter’s revenue guidance of $1.17 billions. However, the analysts had expected $1.26 billion. Revenues saw an increase of 22% of an estimate $1.57 billion as opposed to the $1.58 that was expected.
An increase in total revenues in the US and Overseas were noted, 21% and 23% respectively. Japan remained to be the second-largest market of the company, after the United States.
Role of the new CEO:
This fourth quarter report is of high significance, for it is the first report under the new CEO of twitter. Parag Agrawal stepped in as the new CEO of Twitter in 2021 after Jack Dorsey gave up the position in the month of November.
The representatives of Twitter went on to announce a new buyback programme. The programme would comprise a $4 billion share of the company. It would partly be an accelerated share purchase, the other half of it being in the process of repurchasing it over time.
In spite of having missed some of its revenue figures, Chief Financial Officer, Ned Segal stated that Twitter had successfully reached its goal. They had earned 315 mDAUs and $7.5 billion in revenue by 2023. He mentioned the impact of the advertising expenditure on the fourth quarter revenue, resulting in a slowdown.
The report being Agrawal’s first, highlights his sense of priority and concentration on carrying out his new role. He had previously acted as the Chief Technology officer in Twitter, having played an active role in maintaining the protocol for social media, as part of ‘Project Bluesky’.
Other highlights of the report:
Proving to have inherited the aggressive goals of his predecessor, he showcased faith in the company’s potential. He mentioned the 25% surge in new sign-ups, for which Segel gave credit to the strategies involving encouragement to users from different social media platforms.
Segel commented,”new users look a lot like the people who have come to Twitter in the past, there’s just more of them.” An analysis of the impact posed by companies like Meta, Snap and Apple were also presented.
Like Meta, Twitter also seemed to have been affected by the new privacy policy of Apple while targeting ads on Apple devices. As Meta and Snap were seen to be recovering, Twitter clarified that they had faced a smaller impact than anticipated.
