Parag Agrawal, the successor to Jack Dorsey as CEO of Twitter, experienced his baptism of fire on February 10 by presenting the company’s quarterly results for the first time. On the program for this fourth quarter, results more or less in line with analysts’ expectations, but far from the figures expected for 2023 note CNBC.
Twitter sees high
Twitter’s revenue hit $1.57 billion in the fourth quarter and profit was $176 million. The number of monetizable users is 217 million, up 13% quarter-on-quarter, or 6 million.
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The company said a sudden drop in advertiser spending in the last two weeks of the period affected its performance, but things returned to normal in the first quarter.
Twitter added that the rather disappointing increase in its number of users should not overshadow a good momentum in 2021 with 25% more creation of new accounts or reactivations.
These clarifications are necessary. This assessment, which has nothing to be ashamed of, is received in a mixed way by observers. Jack Dorsey left with ambitious aspirations for 2023, 315 million users by the end of 2023 and $7.5 billion in revenue that same year.
A maintained objective explains the financial director of the company, Net Segal. With 217 million users and $5.08 billion in revenue in 2021, there is a long way to go and growth will need to accelerate very quickly.
There is still work
Good news for the social network, Apple’s new privacy policy for iOS does not seem to impact advertising on the platform as much as feared. Twitter’s main source of income is less affected than in the case of Snapchat or especially Meta.
Since his arrival, Parag Agrawal has restructured Twitter around three poles, consumer products, revenue, core technology, to improve its efficiency. The social network has found a new dynamism with the arrival of new services. Work is being done to make it more accessible to newcomers. 2022 will take care of rewarding these efforts, or not.