February 5, 2014 Last Updated 4:28 pm

Twitter reports Q4 revenue jump of 116%, big loss due to stock-based compensation expense

Tech and financial reporters make way too much of what happens immediately to a stock in after hours trading following the issuing of an earnings report. Apple stock always seems to fall, but often starts trading higher the next day.

So it is with Twitter, which reported robust revenue growth in Q4. Revenue came in $243 million, up 116 percent year-over-year, while full year revenue was $665 million, up 110 percent year-over-year. Pretty good stuff.

Income was a net loss of $511 million, which looks like a disaster until one sees that Twitter’s loss included $521 million of stock-based compensation expense. Folks are Twitter are making out pretty good, apparently.

Some who have looked at the numbers are concerned about the growth of users, but Twitter’s problem has always been monetizing their users, so no earnings report is going to give much insight into that issue.


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