Twitter Reports Strong Revenue But Slowing User Growth
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There’s good news and bad news for Twitter in its first earnings disclosure as a public company. On the one hand, its ad business is clearly maturing and showing robust growth. On the other, there’s escalating proof that its user growth is flattening.
Twitter reported revenue of $242.7 million for the fourth quarter of last year, up 116% from $112 million over the previous year. That amounts to a profit of $9.8 million on an adjusted basis. Net loss was $511.5 million, up from $8.7 million a year earlier and more than double what analysts had projected. It included $521 million of stock-based compensation expense.
Advertising accounted for $220 million, or 90.6%, of revenue, with the balance coming from data-licensing agreements. Mobile accounted for 75% of ad revenue.
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