Twitter stood up to Wall Street critics yesterday, with the company’s Q4 profit and revenue beating estimates. The social media giant reported Q4 revenues of $479m, up 97% year-over-year.
It was not all good news from Larry the bird, with new users signing up to the service stagnating. Just 4 million new users signed up in Q4, compared to the 13 to 16 million users signed up in each of the first three quarters of 2014.
The reasons for this slowing of numbers was put down to Apple’s new mobile OS and specific seasonal factors.
Announced in a conference call by Chief Executive Dick Costolo, the financial report resulted in a drop in shares for Twitter, but these quickly rose to $45.91 in after-hours trading from their closing price of $41.26.
"We closed out the year with our business advancing at a great pace. Revenue growth accelerated again for the full year, and we had record quarterly profits on an adjusted EBITDA basis," said Dick Costolo, CEO of Twitter.
"In addition, the trend thus far in Q1 leads us to believe that the absolute number of net users added in Q1 will be similar to what we saw during the first three quarters of 2014."
Twitter has projected that Q1 revenue for 2015 is on track to reach up to $450m, with the projection a close reflection of analyst estimates of $449.7m.