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Home / Business / Twitter’s stock price plummeted, profitability, user income lower than expected

Twitter’s stock price plummeted, profitability, user income lower than expected



Twitter’s third-quarter results caused its stock to fall after the market on Thursday.

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Twitter Inc. increased users and revenue in the third quarter, but its profits and daily active user revenue did not meet analyst expectations, which caused its stock price to fall sharply in after-hours trading.

Twitter TWTR,
+ 8.03%
The stock fell 12% during the extended trading session on Thursday and closed up 8% to $52.43 on the regular trading day.

The San Francisco-based company said that its average daily profitable users increased to 187 million, an increase of 1 million from the previous quarter and 145 million in the same period last year. Analysts surveyed by FactSet had previously predicted that the number of daily users of the social network would reach 195 million.

Twitter CEO Jack Dorsey said in a statement: “Due to global conversations about current affairs and product improvements, mDAU increased by 29% year-on-year to 187 million.” He pointed out that in the past year, the The company’s daily audience increased by 42 million.

Other social networks, such as Pinterest Inc. PINS,
+ 26.92%
And Snap Inc. SNAP,
-1.49%,
Recently announced the results and attributed its gains to the boycott of Facebook in the summer, which has inspired optimism across the industry. Chief Financial Officer Ned Segal said on the conference call that it was “difficult to take apart” and instead cited Twitter’s own decisions and product improvements to increase its thrust.

The company reported net income in the third quarter of 29 million US dollars, or 4 cents per share, compared to 47 million US dollars in the same period last year, or 5 cents per share. On average, analysts surveyed by FactSet expect its quarterly earnings of 6 cents per share and revenue of $777.3 million. The adjusted earnings per share was 19 cents, including stock-based compensation, income tax, etc.

Revenue increased from US$823.7 million in the same period last year to US$936.2 million. According to the company’s documents, advertising revenue increased by 15% year-on-year to $808 million.

Siegel said in a statement: “Advertisers significantly increased their investment in Twitter in the third quarter, allowing more audiences to pay attention to the return of events and the increase and delay of product launches.” According to Twitter to shareholders Letter, these activities include live sports and entertainment.

Twitter stopped accepting political ads on the eve of the November election, but did not provide a forecast for the fourth quarter. It warned in its earnings report that elections make it “difficult to predict how advertisers’ behavior will change.”

The fourth quarter also includes holidays. Siegel said on the phone, The intensity and timing of the holidays may vary. It may be more digital than ever. ”

In response to analysts’ questions about what Twitter might bring, Segal hinted that the company is engaged in subscription and commerce businesses.

So far this year, Twitter’s stock price has risen by nearly 64% and reached its highest level in five years before the release of its earnings report.


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