Last year, Twitter executives set ambitious goals for their company, hoping to attract more than 100 million new users and double revenue by 2023. In the last three months of 2021, however, the company has shown that challenges must be overcome before it can achieve its objectives. .
Twitter said on Thursday that its revenue grew slower than expected by analysts in the last quarter of 2021, and the company predicted it would report losses in the current quarter. But it did add new users, possibly allaying concerns that it was having a hard time attracting interest in the increasingly diverse market for social media.
Twitter posted revenue of $ 1.56 billion in the last three months of 2021, up 22 percent from a year earlier but lower than analysts had expected. Twitter said it had revenue of $ 176 million, down 34 percent from a year earlier. The company said it has 217 million daily active users who view ads, a 13 percent increase.
Twitter also announced that its board had authorized a $ 4 billion buyback of its stock. The company plans to repurchase its $ 2 billion stock, which it describes as an accelerated timeline, with the remaining $ 2 billion to be purchased over time. The plan follows a previous 2 billion buyback that was authorized in 2020, although $ 819 million was not spent on the program.
“It represents confidence in our strategy and implementation,” said Ned Siegel, Twitter’s chief financial officer, about the share repurchase plan. “We put our money where our mouth is.”
Twitter says it plans to grow rapidly over the next two years, reaching 315 million daily active users and $ 7.5 billion in annual revenue by the end of 2023.
The company added one million daily active users in the United States and five million international users in the fourth quarter. Its total revenue in 2021 was $ 5.08 billion, an increase of 37% over the previous year.
Twitter’s share price changed wildly last week, when Facebook’s parent company, Meta, said privacy changes introduced by Apple had slowed its advertising business. Investors saw Meta’s earnings report as a bell for the social media industry, but Twitter said Apple’s privacy changes have had a minimal impact on its advertising business.
Parag Agarwal, Twitter’s new chief executive, said in a statement: “Our strong performance in 2021 places us in a position to improve implementation and achieve our 2023 goals.” “We’re more focused and better organized to deliver better personalization and choice for our audiences, partners and advertisers.”