7 February 2014
Category:
The Daily News

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.

Down 18%

TwitterThe 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%.

Slowdown

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.

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