Shares of Twitter tumbled Tuesday to the tune of 20% following disappointing first quarter results.
Not only did revenue miss estimates, but Twitter also slashed its sales forecast.
Twitter reduced its full-year guidance to $2.17 billion to $2.27 billion (which is lower than the previously projected range of $2.3 billion to $2.35 billion).
Twitter said its revenue in the first quarter rose 74% to $436 million, up from $250 million a year earlier and missing analysts’ forecast of $456.2 million. Twitter reported adjusted earnings per share of 7 cents, up from zero cents a year earlier and beating analysts’ forecast of 4 cents.
According to Forbes, much attention ahead of yesterday’s report was directed toward how Twitter is handling its stalled user growth.
“Average monthly active users were 302 million for the first quarter, up 18% from 288 million a year earlier, down from 20% in the previous quarter,” the report notes. “Average mobile monthly active users represented about 80% of total monthly active users. Usage on the platform has become more difficult to track, especially in light of Twitter’s removal of its timeline views metric.”
One positive point? Ad revenue clocked in at $388 million, which is up 72% from the same quarter one year previously.