Twitter CEO Parag Agrawal touted the company’s efforts to create new products within the platform — as well as his own approach to his new position — after a Q4 earnings report fell short of Wall Street expectations.
Agrawal said Twitter Spaces as well as newsletter features and expanded monetization tools for creators were just a few of their efforts to evolve the platform. He also explained how his leadership style differed from former CEO Jack Dorsey, who resigned in November.
“Strategy is not enough. In my first 10 weeks on the job, I have been focused on improving execution, using faster decision-making, and focusing on doing fewer things,” Agrawal said during the Q4 earnings call.
“Our strategy that we shared a year ago has not changed. What is changing is an increased focus on execution. We are investing in a massive market opportunity and many incremental investments. There is also efficiency work underway that will pay off. The goal is to create optimal visions for the future to either improve margins or invest in high-value opportunities, making Twitter more profitable.”
For Q4, Twitter reported a revenue of $1.57 billion and an EPS of 33 cents, slightly below Wall Street’s expectations of $1.58 billion and 35 cents.
The company also reported 217 million monetizable daily active users (mDAUs), about 1.6 million users short of expectations. Total ad engagements decreased 12% during Q4.
For 2021, the company said it had a $5.08 billion revenue, an increase of 37% year over year, and an operating loss of $493 million. Twitter also announced a $4 billion share repurchase program.
The company predicted a Q1 revenue between $1.17 billion and $1.27 billion as well as a GAAP operating loss between $225 million and $175 million. The figures did not stop CFO Ned Segal from reiterating that the company still expects to hit $7.5 billion in revenue in 2023 and 315 million mDAUs.
Twitter is one of several social media companies affected by changes to Apple’s iOS privacy features, which now give users the option to limit which apps can track their activity on other sites and platforms. Both Snap and Facebook saw significant changes to their ad revenue due to Apple’s new features.
Meta last week published mixed fourth quarter financial results, sending shares sinking more than 20% in after-hours trading.
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