Twitter shares have tumbled on Friday after the company released its first-quarter earnings, with user growth coming in below expectations.
The social media company reported earnings of $68 million, compared to an $8.4 million loss the previous year, or $0.16 per share, above the forecasted $0.14.
Revenue came in at $1.04 billion, an increase of 28% YoY and just above the predicted $1.03 billion.
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Looking ahead, Twitter said that it expects revenue between $980 million and $1.08 billion in the second quarter. However, analysts had expected guidance of approximately $1.06 billion.
While the number of monetisable daily users increased by seven million from Q4, the 199 million reported came in below the predicted 200 million.
Twitter’s ad revenue rose 32% YoY to %899 million.
“Average monetizable DAU (mDAU) reached 199 million, up 20% year over year and up 7 million sequentially, driven by ongoing product improvements and global conversation around current events,” commented Twitter CEO Jack Dorsey.
Ned Segal, Twitter’s CFO, commented: “Advertisers continue to benefit from updated ad formats, improved measurement, and new brand safety controls, contributing to 32% year-over-year growth in ad revenue in Q1.”
Twitter’s shares have fallen over 13% to $56.52 per share following Thursday evenings release.
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