Shares in Twitter (TWTR) fell heavily today with the market opening 23 percent lower than yesterday’s closing price after investors expressed concern about slowing user numbers following the company’s first earnings report since its IPO.
Twitter had actually beaten the majority of analysts expectations on both revenues and earnings per share, but 2013 total losses of $645 million and Q4 2013 growth of just 3.8 percent to 241 million users weighed heavily on the stock, with shares trading down by as much as 12 percent in after-hours trading yesterday.
Twitter downplayed investor fears that the site’s interface was confusing for new users, while stating that they needed to make better use of visual content, such as video and images.
“We know from our research that these are the kinds of things that cause users to become more engaged and to stick with the product,” said CEO Dick Costolo.
“We don’t need to change anything about the characteristics of our platform. We just need to make Twitter a better Twitter.”