Twitter had what seemed like good news for investors and for the ad world with a better-than-expected 23 percent increase in fourth-quarter revenue in part fueled by growth in video advertising.
However, the strong performance and growth in profit weren’t enough to appease investors.
Shares fell on the announcement that revenue for the first quarter would be lower than expected and full-year operating costs would rise. That news sent share prices down more than 10 percent in midday trading on Thursday.
The social media platform also reported a decline in monthly active users, a drop due in part to its move to delete millions of abusive accounts following wide-spread criticism that some accounts were being used for hate speech and political influence operations.
Monthly active users dropped slightly for the second quarter in a row to 321 million.
Twitter said that ad engagements increased 33 percent from last year in the fourth quarter, while cost-per-engagement fell seven percent.
Twitter CEO Jack Dorsey took an optimistic view saying:
“2018 is proof that our long-term strategy is working. Our efforts to improve health have delivered important results, and new product features like a single switch to move between latest and most relevant Tweets have been embraced by the people who use Twitter. We enter this year confident that we will continue to deliver strong performance by focusing on making Twitter a healthier and more conversational service.”