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Twitter Releases its First Post-IPO Earnings Report

Twitter Post IPO

Image Courtesy: Value Walk

The results are out! And, it’s been a bittersweet experience for Twitter in the quarter ending December 2013, post its IPO launch in November 2013


Monetization has been a question that was raised with the launch of all social media platforms’ IPO. But, it looks like Twitter has found the answer with $242.6 million earned as revenue.

This is the sweet spot.

So, what is the bitter aftertaste?

User Growth and Engagement

The micro blogging site reports current monthly active users to be at 241 million. But user growth has risen only by 4% as compared to the previous quarter. The number of views of Twitter timeline fell by 17% to 148 billion.

Twitter’s success depends on 2 factors:

  • It’s ability to grow the user base and
  • User engagement

Currently, both are faltering, which has had a severe impact on its share holdings. Twitter’s stock price fell by 18% after the report was released.


Despite the scares, it is important to note that Twitter has succeeded in monetization efforts. However, given its current performance, Twitters’ efforts to build the user base and engagement will be closely watched by the Bull as well as marketers.

What does this mean for businesses?

These results may alert brands that are advertising on Twitter to pause and consider the ability of the site to deliver in terms of user reach and engagement. Despite having a large active user base, brands will expect Twitter to project a more promising picture especially after a confident IPO launch.

Team Position2

February 7, 2014

By Team Position2