Twitter posts solid 2013 though new users stall

Feb 5, 2014
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Twitter has revealed its Q4 2013 and fiscal year 2013 financial results, the first since the company's IPO, with revenue up an impressive 116-percent year-on-year. Q4 revenue reached $243m, Twitter announced, though monthly active users slowed, amounting to 241m at the end of the quarter, little more than the 232m at the end of Q3. Still, the solid performance - better than many expected - has left investors unimpressed, with Twitter's stock price slumping post-announcement.

The controversial advertising Twitter injected into users' timelines brought in $220m in Q4, up 121-percent year-on-year, while data licensing and other revenue brought in $23m. International revenue doubled compared to 2012's figures, totaling $66m.

Like Facebook, Twitter saw the most significant portion of its ad revenue from mobile users. In fact, more than 75-percent of total ad revenue came from mobile users.

Twitter still posted a GAAP net loss, of $511m, though it's worth noting that that number includes a $521m stock-based compensation expense. Non-GAAP, income was $10m for Q4 2013, versus a $300,000 loss in the previous year.

The company now expects Q1 2014 to bring in $230-240m, while the full year revenue could be as much as $1.2bn. At time of publication, Twitter's stock (TWTR) was down more than 12-percent in after-hours trading.


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