Twitter projects lackluster sales, sending shares down

These friends set the bar excessive for Twitter, resulting in disappointment within the outcomes, mentioned Mandeep Singh, an analyst at Bloomberg Intelligence. “It goes to indicate that most likely Google and Fb had extra publicity to e-commerce promoting than Twitter,” he mentioned.

Twitter additionally reported that every day lively customers elevated 20% to 199 million, including 7 million for the reason that earlier quarter. The corporate in February estimated year-over-year progress could be 20% within the March quarter, which was the primary interval since former U.S. President Donald Trump was banned from the service. Trump was kicked off Twitter on Jan. 6 for repeated violations of the corporate’s guidelines, and a few analysts have been involved that the previous president’s absence may harm the enterprise.

Income was $1.04 billion within the three months ended March 31, matching analysts’ common estimate. Internet revenue was $68 million, or 8 cents a share, from a lack of $8.4 million, or 1 cent, within the quarter a 12 months earlier.

The inventory dropped to a low of $58.50 in prolonged buying and selling after closing at $65.09 in New York. The shares have gained 20% this 12 months.

Twitter has been on the middle of public dialogue for a lot of the 12 months, partially due to its ban of Trump and the scrutiny from Congress over its function with different social media websites in policing consumer speech. The corporate can also be engaged on a number of new merchandise, together with audio chatrooms to compete with the favored startup Clubhouse, which may result in extra future income.

Consumer progress will start to decelerate within the coming quarters as Twitter compares itself with final 12 months’s growth pushed by the worldwide pandemic and a contentious U.S. election. The corporate expects to extend customers in “low double digits” percentages for the remainder of 2021, in keeping with Twitter’s shareholder letter. These projections have been beforehand introduced in February.

The pandemic hasn’t slowed Twitter’s hiring. The corporate now has 6,100 whole workers, up 20% from a 12 months in the past. The surge in new workers has additionally elevated the corporate’s stock-based compensation prices. Twitter elevated its 2021 estimate for stock-based compensation to $600 million from a variety of $525 million to $575 million beforehand reported.

Though the corporate is constructing subscription merchandise to enhance its promoting enterprise, it didn’t point out any new plans or particulars in Thursday’s shareholder letter.

—Bloomberg Information