Twitter, the social micro-blogging website which went public in 2013 has not been able to generate profits and has suffered more than $2 billion in losses since its foundation 10 years back.
According to the Time, the annual report filed by Twitter to the United States Securities and Exchange Commission revealed that the company witnessed a net loss of more than $520 million in 2015 alone. The social network was already facing losses i.e. accrued more than $400 million in losses, before going public, but that figure rocketed upward after its IPO launch, largely due to stock-based compensation awarded to employees.
However, Twitter prefers to talk about adjusted earnings, which are the figures investors are concerned with. By that measure, Twitter had a net income of $277 million in 2015.
Analysts do not show optimism whether Twitter could effectively grow its user base, which has stunted, and serve those users with more advertisements to increase its revenue. The company’s stock has plunged to $20 per share in the year beginning, decreasing from a high of around $70.
Twitter said in its filing that it struggles to access some markets, such as China, where Twitter is blocked, and some other countries that have intermittently restricted access to Twitter.
These restrictions on the social network negativley impact the company’s ability to increase its user base and generate additional revenue in certain markets, Twitter added.
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