Twitter reported fourth-quarter results early Thursday that missed estimates on the top and bottom lines, as did user growth. Twitter stock wavered.
The social media giant reported adjusted earnings of 33 cents a share, missing estimates of 35 cents, on revenue of $1.57 billion, vs. $1.58 billion expected. Daily active users of 217 million missed estimates of 218.5 million.
Twitter also announced a new $4 billion share buyback program.
Twitter stock ping-ponged between gains and losses throughout the trading session. Shares ultimately closed at 37.08, down 2% on the stock market today.
Twitter Stock: Slowdown In Ad Spending
Revenue climbed 22% from the year-ago period. User growth rose 13%. The company expects revenue for the first quarter in the range of $1.17 billion to $1.27 billion. Analysts had expected about $1.26 billion.
"Twitter had a solid fourth quarter to finish 2021, with over $5 billion in annual revenue, up 37% for the year," Twitter Chief Financial Officer Ned Segal said in written remarks with the earnings release.
Segal said revenue was impacted by a slowdown in ad spending late in the quarter. However, he said, spending picked up early in the first quarter.
It was Twitter's first quarterly earnings report since appointing Parag Agrawal as chief executive in late November, when company co-founder Jack Dorsey stepped down from that role. Agrawal has been with Twitter for more than a decade and has served as chief technology officer since 2017.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
