It hasn’t been smooth sailing for Twitter over the past few quarters. Every quarter investors hope that things will finally look up for the company but it doesn’t turn out to be the case. The company reported its Q4 2016 financial results today and investors saw that the company witnessed lackluster revenue growth in the previous quarter. They predictably hammered the stock which was down as much as 10 percent in pre-market trading.
The Twitter Q4 2016 results do show that the company saw its daily active user count increase by 11 percent. This is the first time in a year that the company has seen a double-digit increase in this user engagement metric.
“We also saw continued, strong double-digit engagement growth on a year-over-year basis across Tweet impressions and time spent on Twitter in the fourth quarter and we expect this momentum to continue,” the company elaborated in a letter to investors.
However, investors were more interested in revenue growth and they weren’t impressed by what they saw. The company’s net loss widened to $167.1 million in the fourth quarter of last year as opposed to $90.24 million in the same quarter back in 2015.
Twitter saw its quarterly revenues increase by just one percent to $717 million. The company took a $101.2 million hit in restructuring charges which are up from $12.9 million in Q4 2015. Twitter has been working hard to turn things around for itself. One of the steps it has taken recently is to clamp down more aggressively on the abuse platform so that users who departed because of this issue could feel safe upon return.
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