Twitter’s stock was down more than 11% in after-hours trading on Thursday after the company released its first-quarter earnings, missing on user growth expectations and providing lower revenue guidance for the second quarter than expected.
Here’s what Twitter reported versus Wall Street’s estimates:
- Earnings:┬а16 cents per share, adjusted, vs. 14 cents forecast by Refinitiv
- Revenue: $1.04 billion vs. $1.03 billion forecast by Refinitiv
- Monetizable daily active users (mDAUs): 199 million vs.┬а200 million expected forecast by FactSet
The company reported revenue of $1.04 billion for the quarter, which was up 28% from $808 million a year prior. Twitter also reported a profit of $68 million, contrasted with a loss of $8.4 million a year ago.
Twitter┬аguided that it is expecting revenue between $980 million and $1.08 billion in the second quarter. Analysts were expecting guidance of $1.06 billion on average, according to Refinitiv.
Twitter’s total number of monetizable daily users grew by 7 million from the fourth quarter to 199 million but fell shy of analysts’ expectations of 200 million. The user base was up 20% compared with a year ago. The quarter marked Twitter’s first period mostly without the presence of former President Donald Trump after he was removed from the service following the Jan. 6 insurrection at the U.S. Capitol.
Twitter ad revenue grew 32% year over year to $899 million, according to the report, with total ad engagement growing 11% over the same period.
The company said it is still too early to understand the impact of┬аApple’s┬аprivacy┬аchanges in iOS 14.5. However, Twitter pointed out that its integration of Apple’s SKAdNetwork enabled the company to increase by 30% the total number of iOS devices it can reach with its Mobile Application Promotion (MAP) offering.
