Twitter's Monthly User Base Flat, Financials Still Slipping
The company's net loss improved to $90.2 million from a loss of $125 million, or 20 cents a share, in the same quarter last year.Twitter reported its fourth-quarter 2015 earnings on Feb. 10, but the news wasn't anything to message home about. The good news: The social network's revenue continues to grow, generating $710 million in Q4 -- an increase of 48 percent over $479 million a year ago -- and it was in line with analysts' projections. Bad news: Operating expenses continue to be a problem; Twitter lost 13 cents a share as a result. The company's net loss improved to $90.2 million from a loss of $125 million, or 20 cents a share, in the same quarter last year. Twitter, whose 10th birthday will be March 21, has never made a profit during its time in business. There was also other bad news. Twitter is a company that relies heavily on growth in its user base; its total in Q2 was flat from last quarter at 320 million registered users and up 9 percent from 288 million last year. Analysts had expected Twitter to report 325 million users.
In the social networking world, steady growth in users is extremely important, because people come and go on a daily basis. While others such as LinkedIn, SnapChat and Facebook continue to grow, Twitter has stalled. It needs to add users at a faster clip or it risks moving into troubled waters.