NEW YORK (AP) — Twitter kick Wall Street’s benefit and income expectations in a initial entertain as a open company. But investors were looking for some-more — including faster user expansion — and a company’s batch fell some-more than 17 percent in after-hours trade Wednesday.
Twitter’s shares fell $11.37, or 17.2 percent, to $54.59 in extended trade after a formula came out. The stock, that appearance during $74.73 on Dec. 26, sealed Wednesday’s unchanging trade event during $65.97.
Twitter finished a final entertain of 2013 with 241 million monthly users, adult 30 percent from a year earlier. But Twitter’s expansion is slowing. The association combined usually 9 million new monthly users in a fourth quarter, usually 1 million of that came from a U.S. That’s a deceleration from progressing in a year, when a association was adding an normal of 16 million new accounts any quarter.
Another closely watched metric, that measures how intent users are with Twitter, declined during a quarter, serve spooking investors. Twitter pronounced a ‘‘timeline views,’’ or how many times users modernise Twitter feeds, revisit Twitter or demeanour during hunt results, declined 7 percent from a prior quarter, to 148 billion from 159 billion.
CEO Dick Costolo sought to be calming during a company’s discussion call with investors and analysts. He pronounced changes Twitter done to a brief messaging use during a fourth entertain are starting to compensate off. For example, users are retweeting some-more posts and imprinting some-more of them as a ‘‘favorite.’’
Costolo combined that Twitter is rolling out ‘‘a series of improvements’’ approaching to boost user expansion and retention. He pronounced a association will make it easier for people to start regulating a use and will also try to move behind dead users.
‘‘We consider there’s a lot we can do to significantly urge a user knowledge over a march of a year in 2014,’’ he said.
Twitter reported a detriment of $511 million, or $1.41 per share, in a October-December quarter. That compares with a detriment of $8.7 million, or 7 cents per share, a year earlier. Adjusted benefit were 2 cents per share.
Twitter’s income some-more than doubled to $243 million from $112 million.
Analysts, on average, had approaching an practiced detriment of 2 cents per share and income of $218.1 million, according to FactSet.
That’s somewhat fewer than some analysts expected. Sterne Agee’s Arvind Bhatia was looking for 244 million users, an boost of 32 percent.
Even so, ‘‘they did have growth,’’ pronounced Gartner researcher Brian Blau.
‘‘Maybe that wasn’t a high customary that we have come to design from (the likes of) Facebook,’’ he added. Besides flourishing a user base, Twitter ‘‘did OK on revenue’’ and on other fronts, Blau said. ‘‘They have good business standards.’’
Three-quarters of Twitter’s promotion income came from mobile ads, compared with 53 percent for Facebook in a same period.
San Francisco-based Twitter Inc. done a Wall Street entrance in Nov with an initial open charity cost of $26. The batch cost has some-more than doubled since. Analysts sojourn assured about Twitter’s business and long-term prospects, though many are job a batch costly compared with peers such as Facebook and LinkedIn.
Blau thinks it’s too early to interpretation either Twitter’s negligence user expansion signals difficulty ahead. That’s since Twitter’s utility isn’t as straightforwardly apparent to many people as Facebook and LinkedIn. It takes usually a few mins to know that Facebook is an easy approach to emanate a digital scrapbook that can be common with friends and family and that LinkedIn is a good place to post your veteran achievements in hopes of removing improved jobs.
But Twitter’s potpourri can be treacherous for beginners, Blau said, creation it some-more severe for a association to benefit some-more users. ‘‘Twitter is all about joining with real-time information,’’ Blau said. ‘‘Once people get that, they tend to keep entrance behind and it opens adult a whole new universe of possibilities.’’
For a stream quarter, Twitter is forecasting income of $230 million to $240 million. Analysts were awaiting $215.2 million.
AP Technology Writer Michael Liedtke contributed to this story from San Francisco.