Twitter disappointed investors in its first earnings statement as a public company leading to its share price tumbling in late trading.
The micro blogging company said its revenue rose 116 per cent to $243m in the fourth quarter of 2013, but its share price fell more than 10 per cent in after-hours trading as investors worried about the slowing pace of growth in users of the service.
Twitter said its closely-watched number of average monthly active users (MAUs) were 241 million as of December 31, an increase of 30 per cent year-over-year.
But analysts pointed out that was only 3.8 per cent more than the previous quarter, and the stock price took a hit.
Further, analysts said Twitter's quarterly “Timeline Views”, its equivalent of page-views or a measure of user engagement, fell from about 159 billion to 148 billion - a number that disappointed many analysts.
“What this report will do is it will question how mainstream is Twitter as a platform,” Arvind Bhatia, an analyst at Sterne, Agee & Leach, told Reuters.
“Both in the US and internationally, the monthly active user base did not grow as fast as people thought, and that has an impact on the number of timeline views.”
This was Twitter's first quarterly earnings statement since going public in November at $26 a share. The stock climbed to around $70 in December.
It was trading around $65 before its results came out on Wednesday and fell to around $59 after the news.
Twitter said advertising revenue for the quarter rose 121 per cent to $220m, with mobile advertising making up more than 75 per cent of that total. International revenue soared 200 per cent to $66m.
For the fourth quarter, Twitter posted earnings of 2 cents a share, excluding items, in the fourth quarter, beating analysts' average expectations for a loss of 2 cents a share.
Looking forward, Twitter projected revenue for the first quarter of 2014 of $230 million to $240 million, and full-year revenue of between $1.15 billion and $1.2 billion.
The top 10 Twitter gaffes of 2013
The top 10 Twitter gaffes of 2013
1/10 In at number 10: After an interview with the MP Rachel Reeves, Newsnight producer Ian Katz thought she was ‘snoring boring’. Unfortunately, he published this opinion to the world on Twitter
2/10 David Cameron was embarrassed by revelations that his official Twitter account followed news from a high class escorts agency – he quickly stressed that he did not manage the list of accounts personally
3/10 The Tory MP Gavin Barwell objected to an internet advert to ‘date Arab girls’ that he thought was included in a Labour press release. It was actually popping up via Google based on his own ‘interests’
4/10 Burger King’s official Twitter account was hacked earlier this year, and a series of embarrassing posts followed (such as this one). The issue was not fixed for several hours
5/10 It emerged this year that Benjamin Netanyahu, the Israeli Prime Minister, followed the account of a 'library for hot sex books in the Persian language'
6/10 The designer Kenneth Cole, not a stranger to controversy, decided to cash in on the Syrian crisis by making a joke about getting troops into the country. He tweeted: “Boots on the ground' or not, let's not forget about sandals, pumps and loafers. #Footwear”
7/10 Cereal brand Kelloggs was forced to apologise this year after it seemed to want to turn a crisis of vulnerable children into an opportunity to increase its social media reach
8/10 Cricket Australia was accused of ‘casual racism’ after tweeting this photograph of four Sikh men dressed as Teletubbies with the message: “Will the real Monty Panesar please stand up?!”
9/10 The 9-year-old “Beasts of the Southern Wild” actress Quvenzhané Wallis was universally adored at the Oscars at the start of this year – prompting the satirical news website The Onion to tweet that she was ‘kind of a c***’. It later apologised and promised to review its social media policy
10/10 The most shocking Twitter gaffe of the year was surely this series of tweets from the recipe and cooking advice website Epicurious. It tried to use the Boston Bombing as a marketing hook to get people to read about cranberry scones – and later apologised only for ‘seeming’ offensive.