Twitter Flat on Pulling Guidance

Twitter Inc (NYSE:TWTR) on Monday withdrew its earnings guidance for the first quarter of the financial year 2020 as its business is significantly impacted by the novel coronavirus (COVID-19) outbreak.

The social media company said it expects a lower revenue year-on-year and that it is likely to incur GAAP operating losses for the quarter.

Twitter had given a guidance of Q1 revenue between $825 million to $885 million, and an operating income between zero and $30 million, when it reported its earnings for the fourth quarter last year.

The Jack Dorsey-led company also withdrew its outlook for expenses, stock-based compensation, headcount, and capital expenditures for the full financial year.

Global conversation about COVID-19 as well as ongoing product improvements are driving strength in total monetizable DAU (mDAU), with quarter-to-date average total mDAU reaching approximately 164 million, up 23% from 134 million in Q1 2019 and up 8% from 152 million in Q4 2019.

Said Dorsey, "Twitter's purpose is to serve the public conversation, and in these trying times our work has never been more critical. We're seeing a meaningful increase in people using Twitter, and our teams are demonstrating incredible resilience adapting to this unprecedented environment.

"We'll continue to navigate this environment focusing on supporting our employees, customers, and partners, while strengthening our service for everyone around the world and adjusting to a new operating and economic environment."

Twitter is expected to report Q1 earnings on April 30.

Twitter shares demurred six cents to $24.63.