Twitter said the declining monthly active user trend was because of a mix of factors, including efforts to improve "the health of the service" as well as changes made to comply with sweeping data privacy protections in Europe.
It expects capital expenditure of between $550 million and $600 million, well above analysts' average estimate of $415 million for 2019. In its guidance, the company offered a revenue range of $715 million to $775 million against analyst consensus of $764.9 million, according to Refinitiv data published by CNBC.
Twitter's earnings report released on Thursday also revealed it was the company's fifth consecutive quarter of profitability, The Washington Post reports.
Twitter's operating costs are expected to surge by 20 percent year on year, a large increase from analysts projections of 12 percent. For instance, earlier this week Snapchat reported that it has stopped shedding users and is keeping the service afloat at 186 million daily users - but it's not clear how many of those daily users are monetised by Snapchat. The number of daily users grew 9 percent year over year to 126 million in the fourth quarter, Twitter said.
Thai PRINCESS joins race for Prime Minister in EXTRAORDINARY break from tradition
Soon after Friday's announcement, her catchphrase #SongPhraSlender (Long Live Slender) was number one on Twitter in Thailand. In general, like most of the royal family, she publicly kept herself aloof from Thailand's recent political turmoil.
Meanwhile, the uptick in users who use Twitter's platform at least once a day is an encouraging sign for advertisers, Enberg said.
"Higher operating expenses, on the other hand, are a bigger problem, as I anticipate Twitter's margins and profits to shrink considerably in 2019".
The official daily active user numbers were revealed in a letter to shareholders and were much lower than expected, listing the current daily active user count at around 126 million users. Total advertising revenue was up 23% quarter-on-quarter to $791m, with video ads representing more than half of sales. The figure represents a 9% gain from the 124 million daily users seen during the third quarter of 2018, and a 9% gain year-over-year; double digit growth was seen in 50% of Twitter's top ten markets. $791 million of that figure comes from advertising revenue, split $425 million in the United States compared to $366 internationally - while data licensing making up the other $117 million. The shares closed down $3.36 to $30.80 in regular trading, and dropped an additional 4 cents a share in after hours trading.
Twitter has made its first annual profit in its 13-year history but another fall in the number of its users and a disappointing sales forecast took the gloss off the results and sent its shares down almost 10 per cent.