A share buyback program offset twitter’s worse-than-expected Report
Twitter (TWTR), which recently received a new CEO, reported worse results for the 4th quarter of 2021 than Wall Street analysts expected on average. The company’s forecast for the 1st quarter of 2022 is slightly lower than estimates. In addition, Twitter announced a new $4 billion share buyback program.
On Thursday, after the close of trading, Twitter published a financial report for the 4th quarter of 2021, which was the first Report under the leadership of the new CEO. Technical director Parag Agrawal replaced Jack Dorsey in December, but this in the growth of Twitter shares.
Twitter (TWTR) shares, lost almost 46% over the past 12 months and 14.2% since the beginning of 2022, declined slightly in the postmarket amid a general decline in technology sector stocks. Trading signals and forecasts for Twitter stocks.
Earnings per share for the 4th quarter decreased by 13% (compared to the 4th quarter of 2020) to $0.33 $0.35 expected by the market.
Total revenues increased by 22% to $1.57 billion, below the analytical estimates of $1.58 billion. Quarterly revenue and profit statistics on the Twitter reports page. Total revenues for the whole of 2021 reached $5.08 billion, an increase of 37%.
The number of monetized daily active users (MDA) increased by 13% (from the same quarter last year) to 217 million. Against the 218.6 million predicted by analysts. In the previous 3rd quarter, the number of mDAU users was 211 million.
The total number of interactions with advertising, including clicks, decreased by 12% during the quarter. However, the cost of each interaction with advertising increased by 39%.
Twitter’s management attributes this to the transition to video advertising and other formats, which usually attract fewer users but are more expensive and profitable.
Twitter does not pay dividends but repurchases its shares, which increases its value. In addition, Twitter announced a new $4 billion share buyback program during the Report.
The company forecasts total revenue in the first quarter of $1.17 billion to $1.27 billion. The average value of this range is below the average analyst forecast of $1.26 billion.
Twitter’s new CEO Agrawal said the company still believes it can achieve the goal of 315 million users and annual revenue of $7.5 billion. By the end of 2023, and stated that the growth in the number of users in the U.S and around the world should accelerate this year.
The company said that changes to privacy rules in Apple’s iOS (AAPL) on its financial results remain modest.
According to CFO Ned Segal, Apple’s changes may affect Twitter in the future, as the company expands its advertising business, meaning advertising aimed at stimulating sales or other consumer actions. Twitter said they are working to mitigate the future harmful effects of Apple’s changes.
Market analysts expect better monetization from Twitter in the future through digital advertising tools subscription services, also waiting for the results of the company’s efforts in the field of NFT.
Facebook’s parent company Meta Platforms (FB), Snap (SNAP), and Pinterest (PINS), have published their reports earlier. As a result, meta shares have fallen by 29.3% since the day of the Report on February 2, while Pinterest shares (Report on February 3) fell by 6.5%, and Snap shares (Report on February 3), on the contrary, jumped by 66.2%.
At the same time, Meta reported the most substantial negative impact of the new privacy rules in iOS, calculating potential losses of about $10 billion in 2022.
