Twitter Predicts Slower Growth In Sales And User Base
Twitter had a strong start last year in its first financial report, but their outlook for 2014 proved disappointing, causing a drop in their stock in the after-hours trading.
The microblogging site’s sales had a 116% increase from last year with $243 million, easily toppling the Wall Street analaysts’ prediction of $218 million before.
Nonetheless, Twitter pegged its expected sales at only between $230 and $240 million. Although this is double of last year’s earnings, it is still lower than the previous quarter. This is the first time that Twitter’s quarter-over-quarter sales fell since its first revenue report in 2011.
As a result, the shares were down by almost 18%.
The social network has reported a net loss of $511 million in the quarter, and it is yet to earn some profit. Most of the loss, however, was due to the cash out of their employees’ stock-based compensation.
Twitter is also experiencing a slowdown in user growth.