Twitter reports $645m loss for 2013

Twitter was valued at $18bn when it floated on the New York Stock Exchange in November.

Microblogging site Twitter has reported a net loss of $645m (£396m) for 2013, just three months after its flotation on the New York Stock Exchange.

The loss was expected by analysts, who highlighted Twitter’s revenues, which rose 110% last year to reach $665m.

Twitter brings in money largely by selling advertising space and data on tweeting habits.

Investors are hoping that business will begin generating profits as the company continues to grow.

But they appeared disappointed by the company’s performance so far. Shares fell as much as 12% in after-hours trading on Wednesday.

User growth slowing

For the last three months of 2013, Twitter said it made a net loss of $511m on revenues of $243m.

More than 90% of that came from advertising, particularly via mobile devices.

Twitter said it was continuing to improve its services to advertisers in the hope of growing revenues further.

It also said it was improving its “overall user experience” by launching enhancements like custom timelines, and the ability to send and receive photos via direct message.

But the rate at which new users are joining Twitter – a measure closely watched by analysts – appears to be falling.

It averaged 241 million monthly users in the last quarter of the year, up just 3.8% from the previous quarter. That is down from growth of 10% seen at the beginning of the year.

 

 

 

Source: BBC NEWS

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