Shares of Twitter (NYSE:TWTR) are plunging in pre-market trading after the company reported underwhelming first-quarter results and provided weaker than expected forward guidance.
Twitter’s stock was down more than 10% after the company reported that its first-quarter earnings missed on user growth expectations and the company revised down its revenue guidance for the current second quarter.
The social media company reported revenue of $1.04 billion U.S. for the quarter, which was up 28% from $808 million U.S. a year earlier. Twitter also reported a profit of $68 million U.S., compared with a loss of $8.4 million U.S. in the first quarter of 2020.
Twitter’s earnings came in at 16 cents U.S. per share versus 14 cents U.S. that analysts had expected. Analysts had also expected revenue in the first quarter to come in at $1.03 billion U.S.
The company guided that it is expecting revenue of between $980 million U.S. and $1.08 billion U.S. in the second quarter. Analysts were expecting guidance of $1.06 billion, on average, according to Refinitiv data.
Twitter’s advertising revenue grew 32% year-over-year to $899 million U.S. in the first quarter, with total advertisement engagement growing 11% during the period.
The first quarter marked Twitter’s first period without the presence of former U.S. President Donald Trump after he was removed from the social media platform following the January 6th insurrection at the U.S. Capitol.
Tech Insider
