Twitter shares tank as profit, user gains fall short of expectations
Average daily users rose to 187 million in the third quarter, 8 million shy of analyst estimates
Twitter Inc. added users and revenue in the third quarter, but its profit and daily active-user gains fell short of analyst expectations, sending its shares sharply lower in after-hours trading.
Twitter shares fell 12% in the extended session Thursday after closing the regular session up 8% to $52.43.
The San Francisco-based company said its average monetizable daily users increased to 187 million, compared with 145 million in the year-ago period. Analysts had expected the social network’s daily user count to hit 195 million.
The company reported third-quarter net income of $29 million, or 4 cents a share, compared with $47 million, or 5 cents a share, in the year-ago period. Analysts surveyed by FactSet had forecast earnings of 6 cents a share on revenue of $777.3 million.
Revenue rose to $936.2 million from $823.7 million in the year-ago quarter.
Adjusted earnings were 19 cents a share, adjusted for stock-based compensation, income taxes and more.
Twitter shares have risen nearly 64% so far this year
