Twitter, Inc. (NYSE: TWTR) shares fell more than 10 percent after after the company reported fourth-quarter revenue that fell short of Wall Street estimate, as the social network had trouble attracting advertisers.
The company said revenue rose just 1 percent to $717 million in the fourth-quarter, missing analysts estimate of $740 million. Excluding certain items, fourth-quarter earning was $119 million, or 16 cents a share, beating analysts’ estimates of 12 cents per share.
The company has been struggling in adding more users and attracting advertisers. The company only added 2 million new users in the fourth quarter, bringing to a total 319 million monthly active users. Total advertising revenue declined year-over-year to $638 million.
“While revenue growth continues to lag audience growth, we are applying the same focused approach that drove audience growth to our revenue product portfolio, focusing on our strengths and the real-time nature of our service. This will take time, but we’re moving fast to show results,” CEO Jack Dorsey said in a statement.
Twitter shares fell as much as 9.5 percent to 16.93 in the early trading in New York, marking the biggest decline since October.
“Advertising revenue growth may be further impacted by escalating competition for digital ad spending and Twitter’s re-evaluation of its revenue product feature portfolio, which could result in the de-emphasis of certain product features,” the company said.