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2022-02-10 18:21

Twitter Inc closed down about 2.0% on Thursday after the social-media firm fell short of user-growth predictions for its most recent quarter, despite unveiling a fresh $4 billion repurchase programme.

Financial update
The company has generated a revenue of $5.08 billion for its full year 2021, this is a rise of 37% on yearly basis whereas for the fourth quarter of 2021, the revenue was $1.57 billion. In Q4 the revenue has surged by 22% y-o-y or 23% on a constant currency basis.

A one-time litigation-related net charge of $766 million, along with ongoing investments, lead to an operating loss of $493 million, or a -10% operating margin for the year 2021. The net loss calculated for the full year 2021 was $221 million, with a net margin of -4 % and diluted EPS of ($0.28).

The company has provided its costs and expenses for the fourth quarter as $1.40 billion, a 35% rise year on year. This culminated in $167 million in operating income and an 11% operating margin, relative to $252 million in operating income and a 20% operating margin in the fourth quarter of 2020. Stock-based compensation (SBC) expenditure increased 38% year on year to $177 million, accounting for nearly 11% of total income.

The company’s net income in the fourth quarter of 2021 was $182 million which includes a net margin of 12% as well as earning per share of $0.21. The Chief Executive Officer, Parag Agrawal stated:

“Our strong 2021 performance positions us to improve execution and deliver on our 2023 goals. We are more focused and better organized to deliver improved personalization and selection for our audience, partners, and advertisers."

Financial outlook for 2022
The company has also provided its financial expectations for Q1 and full year 2022 however thy have mentioned that their financial projection for the first quarter and the full year 2022 is based on January 2022 foreign exchange rates.

For the first quarter of 2021, the company expects its revenue to be in the range of $1.17 billion - $1.27 billion while the analysts projected the revenue of $1.26 billion. On the other hand GAAP operating loss will be around $175 million and $225 million.

For the full year 2022, company’s stock based compensation expense will be around $900 million to $925 million. While the Capital expenditures for the full year 2022 is anticipated to be between $900 million and $950 million. The earnings press release read:

“We will continuously evaluate efficient alternatives to using cash on hand to fund the program, including accessing the capital markets, subject to market conditions.”