Twitter posted revenues and user numbers mostly in line with analyst estimates in stark contrast to the better performing digital ad firms like Facebook and Alphabet.
Twitter shares sank 11 percent in post-market trading on Thursday as it offered tepid revenue guidance for the second quarter, warned of rising costs and expenses and said user growth could slow as the boost seen during the coronavirus pandemic fizzles. The social media company posted revenues and user numbers mostly in line with analyst estimates in stark contrast to the better performing digital ad firms like Facebook and Alphabet. It said it expected second quarter revenue between $980 million (roughly Rs.7,250 crores) and $1.08 billion (roughly Rs.7,990 crores), lower than Wall Street estimates of $1.06 billion (roughly Rs.7,850 crores) on average, according to IBES data from Refinitiv. It also said stock based compensation for new hires would be more than expected this year. Twitter says it wants to reset after years of product stagnation, announcing in February bold goals to expand its user base, speed up new features for users, and double its revenue by 2023. «The explosive growth that Twitter experienced during the pandemic is slowing rather rapidly in the aftermath of an eventful 2020 in which the microblogging site benefited immensely from the US elections and a pandemic-driven surge,» said Haris Anwar, senior analyst at Investing.com. Advertisement revenue for the first quarter were $899 million (roughly Rs.6,650 crores), up 32 percent from the same period a year ago and beating analyst estimates of $890 million (roughly Rs.6,590 crores). Total revenue for the quarter was $1.04 billion (roughly Rs.7,700 crores), up 28 percent year-over-year and slightly higher than estimates of $1.
