Twitter has impact and influence — but not cash or growth
"Just like Myspace perhaps Twitter does not what to 'change the formula' for fear of losing its unique simple user experience, but the shareholders and CEO Jack Dorsey are running out of time," Mark Skilton, a professor at Warwick Business School, wrote in an email.
The social media company expects between $75 million and $95 million in adjusted earnings this quarter before interest, taxes, depreciation and amortization.
In a charged political and social environment, the company is balancing its position as a platform for free speech while curtailing hate speech and bullying.
Excluding special items such as expenses for stock compensation, per-share earnings of 16 cents was 4 cents better than expected, but that was overshadowed by its outlook.
Advertising revenue fell slightly to $638 million in the fourth quarter, and the company said tough competition and Twitter's push to re-evaluate its product portfolio could affect future revenue growth.
The company says it streamed more than 600 hours of live premium video from sports, news and entertainment events during the quarter, drawing 31 million unique visitors.