Twitter Posts Loss of $645 Million for Last Year
Published on: 6th Feb 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Microblogging webservice Twitter has reported a net loss of USD645 million for the past year although that was in line with expectations.
Revenues for 2013 more than doubled to USD665 million, although slowing growth in user numbers has worried investors.
Twitter said that it had an average of 241 million monthly users in the last quarter of 2013, a growth rate of just 3.8% over the previous quarter, and significantly down on the 10% quarterly growth rate seen earlier in the year.
The company also said that timeline viewing was down by 7 percent, suggesting users are spending less time on the service, or possibly that they are making more use of 3rd party apps despite Twitter's attempts to reign them in somewhat.
The company has pledged to improve its services for advertisers as it comes under increased pressure to show that it has a viable business model to justify its high stock market valuation.
As it is three quarters of its advertising income comes from the mobile service, which represented about 80 percent of its total income last year.
To a degree, the company faces the opposite problem to rival Facebook which was criticized for being too weak in mobile, whereas Twitter appears too weak in the more lucrative desktop advertising market.
They currently project that revenues for this year will nearly double again to around USD1.2 billion.
The company ended the year with USD2.2 billion in cash and equivalents.