Twitter Inc (NYSE:TWTR) saw its shares slide as it missed expectations on earnings, revenue and user growth this year, as the company announced its latest earnings report.
In the first results under new chief executive officer (CEO) Parag Agrawal, following the resignation of Jack Dorsey in November, the social media site saw top-line growth of 22% in the fourth quarter of 2021 (Q4 2021), while operating profits of US$167mln were 33.7% lower than the figure in Q4 2020.
The company’s share price fell by 1.98% over the day as disappointing figures were contrasted against positive signals on progress towards user targets and the announcement of a share repurchase scheme.
The Twitter board approved US$4bln in share buyback, with half of that occurring on an accelerated basis, adding to the company’s aggressive strategy to hit user targets.
Around six million users were added in the last quarter, allowing the company to reach 217 million overall, with chances of the company adding a further 98 million to reach its target of 315 million by Q4 2023 growing slimmer.
The company said it was less affected than expected by the introduction of Apple’s privacy-related iOS (operating systems) changes, which make it harder to generate revenue off personalised advertisements.
Total ad engagements decreased by 12%, but ad revenue rose by 22% over the year, though engagement declines likely contributed to the company’s US$1.41bn figure missing analyst estimates of US$1.43bn.
The company’s revenue growth guidance for 2022 lay in the low to mid 20% range, with capital expenditure between US$900mln and US$950mln.