Twitter, fourth quarter 2021 below expectations: not growing enough

Twitter reported growth in fourth quarter of 2021 lower than expected, both in terms of users and revenues obtained. However, the company authorized the ‘buyback ‘of 4 billion dollars of their actions. CFO Ned Segal, however, has argued that they will be able to reach the ambitious goals for 2023.

Twitter grows less than expected in the fourth quarter of 2021

The company has reported today its performance to shareholders, showing that it has grown less than expected. Revenues per share are al 33% instead of 35%. Total income is 1.57 billion dollars instead of 1.58 billion. Most importantly, the active and monetizable users are 217 million instead of 218.6 million.

The company then grows, but not as expected. And he expects receipts of around $ 1.17 billion and $ 1.27 billion for the next quarter, with analysts forecasting a similar figure (1.26 billion).

Despite these numbers, the CFO Ned Segal he explained that the company is still on course to catch up 315 million active users and 7.5 billion in revenues annual by the end of 2023, as previously announced. Segal blamed the reduced revenue from advertisers, which he expects to restart with the new year.

Therefore, the first quarter of the new CEO Parag Agrawal opens badly, after the farewell of Jack Dorsey. The CEO inherited Dorsey’s ambitious goals and says the trend over the past three months increases his sense of urgency to achieve results as soon as possible. Also because it reports an annual growth of new accounts of the + 25% and an increase in daily accesses of + 35%.

However, the Twitter report follows those of Half And Snap, the other two major social networks that reported lower-than-expected growth. Which could also be influenced by the new FrsApple’s Privacy Policywhich make it more difficult to deliver personalized ads.

A quarter is not a trend, but the fact that all the major American social media companies grew less than intended could mark a historic turning point. We will keep you informed.

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