Shares of Twitter Inc. (NYSE: TWTR) decreased 4.07% to $14.37 on Thursday morning. The company announced fourth quarter financial results on Tuesday, and it’s the first time Twitter failed to show users growth. The disappoint financial result pushing the stock price to new lows and fueling investor anxiety that the company doesn’t have a turnaround plan.
Twitter announced 320 million users signed into the social network service at least once a month during the fourth quarter, the same as the third quarter. Excluding those who access Twitter through messaging platforms, the company stated the decrease of 2 million monthly active users.
The stagnate of user growth has troubled Twitter since its IPO in 2013 at a huge valuation of $25 billion, but it has dropped over $10 billion recently. Investors have stayed stubbornly fixated on user growth in the shadow of big competitor Facebook Inc. (NASDAQ: FB).
The more users that register and spend time on Twitter, the more potential for targeted advertising which is the majority revenue of the company. Total revenue of Twitter was a bright spot, increasing 48% to $710.5 million because of the popularity of its video advertising. However, the stalled user growth still made investors anxiety, especially under current volatility market.
“We think there’s a lot of opportunity in our product to fix some broken windows and some confusing aspects of our service that we know are inhibiting growth,” Chief Executive Jack Dorsey said on the earnings call.
According to the fourth quarter financial results, net loss decreased 28% to $90.2 million compared with net loss of $125.4 million last year. Earnings per share was $0.16 which decreased 20% from $0.20 last year. Twitter was outlook their next quarter range between $595 million to $610 million which far below the consensus guidance of $629.3 million.