Social Media

Twitter Shares Drop Due to Lower Than Expected Engagment

Twitter posted a healthy revenue for its third quarter, but that wasn’t enough to impress investors.

The social media firm’s stock slipped more than nine percent in after hours trading Monday on the news that user growth was down from the previous quarter.

Average monthly active users were 284 million for the third quarter, an increase of 23 percent year-over-year — down from 24 percent in the prior period.

Financially, Twitter met Wall Streets’ expectations, reporting revenue of $361 million, up 114 percent from last year. Analysts had forecast revenue of $351 million.

Mobile advertising revenue accounted for 85 percent of total advertising revenue in the quarter.

Despite that, however, Twitter still posted a $175.5 million loss, or 29 cents a share compared to a loss of $64.6 million, or 48 cents a share, in the year ago quarter.

“We had another very strong financial quarter,” said Dick Costolo, CEO of Twitter. “I’m confident in our ability to build the largest daily audience in the world, over time, by strengthening the core, reducing barriers to consumption and building new apps and services.”

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