Twitter reports lacklustre user growth, $309m revenue

The Twitter logo is displayed on the floor of the New York Stock Exchange in this file photo taken on Nov 8, 2013. Twitter Inc reported anaemic user growth during the final three months of 2013, sending shares sinking after its first quarterly r
The Twitter logo is displayed on the floor of the New York Stock Exchange in this file photo taken on Nov 8, 2013. Twitter Inc reported anaemic user growth during the final three months of 2013, sending shares sinking after its first quarterly report as a public company. -- FILE PHOTO: REUTERS

SAN FRANCISCO (REUTERS) - Twitter Inc reported anaemic user growth during the final three months of 2013, sending shares sinking after its first quarterly report as a public company.

Shares dropped more than 10 per cent to US$58 in after hours trading.

The company reported US$243 million (S$309 million) in revenue during the fourth quarter, topping investors' expectations of US$218.2 million, on average.

But user growth, a closely watched metric, appeared to falter. It averaged 241 million monthly users, up just 3.8 per cent from the previous quarter - the lowest rate since Twitter began disclosing its user figures.

Twitter's user numbers grew at 10 per cent, 7 per cent, and 6 per cent during the first three quarters of the year, respectively.

Twitter, which held a highly-anticipated initial public offering in November at US$26 a share, has divided investor opinion in the months since as shares more than doubled to more than US$66 despite an absence of news.

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