- Title: Twitter revenue hit by weaker advertising, low demand; shares plunge
- Date: 24th October 2019
- Summary: NEW YORK, NEW YORK, UNITED STATES (FILE) (REUTERS) VARIOUS OF TWITTER APP ON CELL PHONE
- Embargoed: 7th November 2019 14:57
- Keywords: Twitter results earnings Jack Dorsey revenue advertising problems product bugs
- Location: NEW YORK, NEW YORK, + WASHINGTON, D.C., + SAN FRANCISCO, CALIFORNIA, UNITED STATES
- City: NEW YORK, NEW YORK, + WASHINGTON, D.C., + SAN FRANCISCO, CALIFORNIA, UNITED STATES
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA001B2GJC7H
- Aspect Ratio: 16:9
- Story Text:Twitter posted worse-than-expected third quarter revenue and profit on Thursday (October 24), which the company attributed to advertising problems including product bugs and unusually low demand over the summer, sending its shares down about 15%.
Shares of the micro-blogging platform dropped to $33 in trading before the bell.
Twitter's revenue rose 9% from a year earlier to $824 million, missing Wall Street expectations of $874 million, based on IBES data from Refinitiv. Total advertising revenue was $702 million, an increase of 8% year-over-year.
Third-quarter net income was $37 million, or $0.05 per share. In the same period last year, the firm reported net income of $789 million, or $106 million when adjusted to exclude certain items.
Analysts had expected net income of $161.5 million.
Twitter had forecast that third quarter revenue growth would lag the first two quarters, partly due to ending some older ad formats. But it also encountered unexpected problems, such as bugs which impacted its ability to target ads and share data with ad partners, and fewer big events compared with the previous summer.
For the fourth quarter, Twitter expects total revenue to be between $940 million and $1.01 billion. Wall Street on average expects $1.06 billion.
However, the social media platform did record a rise in daily users who see ads on the site, beating analyst estimates.
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