Twitter (NYSE:TWTR) shares tanked Thursday after the company reported third-quarter advertising and revenue “headwinds” and missed expectations on the top and bottom lines.
TWTR reported earnings per share of 17 cents compared to 20 cents expected. Revenue came in at $823.7 million, as opposed to the expected $874.0 million.
The social media giant also revealed monetizable daily active users registered at 145 million.
The company told shareholders, "In Q3 we discovered, and took steps to remediate bugs that primarily affected our legacy Mobile Application Promotion product, impacting our ability to target ads and share data with measurement and ad partners.
"We also discovered that certain personalization and data settings were not operating as expected. We believe that, in aggregate, these issues reduced year-over-year revenue growth by three or more points in Q3."
Twitter also projected lighter-than-expected fourth-quarter revenues. The company expects to bring in revenue of $940 million to $1.01 billion — just shy of the $1.06 billion that analysts had forecast.
Total advertisement engagements increased 23% year over year, and cost per engagement dropped 12%.
After sinking sharply before the bell, Twitter shares regained some of the losses. Before the earnings report, shares were up 35% in 2019, with a market cap just above $30 billion. Thursday’s pre-market stock move shaved as much as $6 billion off the company’s market cap.
Shares collapsed $7.50, or 19.3%, to $31.32 in Thursday's first hour of trading.
Tech Insider
