Twitter Records Growth In Revenue As User Growth Falls Below Expectations
Twitter has not been able to match its growth in revenue with its user base as the microblogging platform continues to seek new ways to catch up with competitors. The company last Thursday reported revenue that almost doubled in its final three months of 2014. This however, falls drastically short of the expectations of analysts, reports the Daily Mail.
“We closed out the year with our business advancing at a great pace,” said Dick Costolo, the chief executive officer of Twitter.
Twitter recorded a 97 percent rise in revenue, representing $479 million in the fourth quarter, which is a rise from $242.6 million in the same period of 2015.
Twitter’s quarterly loss fell to $125 million compared with $511 million recorded the same period in 2014.
However, the company only recorded four million more users more than in the previous quarter, which brought its total figure to 288 million. This figure falls short of what analysts had projected for the company. Analysts had predicted that Twitter’s user base would rise to 292 million.
Among measures being taken by Twitter to improve on its user base, which has been badly hit recently, is a deal recently reached with Google, which will make the its 140-character updates more searchable online by a lot of users.
According to Bloomberg, tweets posted by users will become visible on Google search engine, which will enable more people view them. This effort would further promote tweets and make Twitter more popular and ultimately generate more revenues for the microblogging company.
The tweets will start to be visible on Google search engine from the first half of this year as soon as they have been posted by members. The deal means that Google will now have access to Twitter’s ‘firehouse’, which is the stream of data generated by the company’s 284 million members.
Twitter’s user growth however, is a major concern for Costolo and his team as the company continues to lag behind its competitors, with Instagram recently hitting 300 million users.
LinkedIn also came out with its report last Thursday, which showed that the company recorded 347 million users through the end of December. Facebook however, remains the number one social network company in the world as its user base is put at 1.39 billion.
Twitter’s slow pace growth in the fourth quarter has been linked to changes in the way third-party apps integrate with Twitter.