Twitter’s first quarterly earnings report causes a stock price drop

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It’s not unusual to peer closely at a company’s performance once they’ve made their initial public offering. Everyone did it with Facebook, now Twitter is coming under equal scrutiny. By more than just tech websites as well, the micro-blogging service’s first quarterly earnings reports has cause a dip in Twitter’s stock prices owing to the losses that the company posted for the reported period.

Twitter’s first investor financial report saw the company doubling its revenues compared to 2012, posting a total of $664 million for the whole of 2013. But, unfortunately, Twitter also posted a loss of $511 million for Q4 2013, giving them a total net loss for the year of $645 million.

The major loss for the fourth quarter was laid at the door of “…$521 million of stock-based compensation expense, of which $406 million was for restricted stock units previously granted to employees, for which no expense had been recognized, until the effective date of our initial public offering”. So the huge loss seems unlikely to be repeated. But still, the company’s stock fell after the announcement, though it has bounced back a little at this point.

Source: Ars Technica

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