Inferior third-quarter profit and revenue at Twitter overshadowed strong user broadening, sending shares of the social media company plummeting 16 per cent formerly the opening bell.
The San Francisco company also lowered its outlook for the fourth-quarter and for the year and reproved some of its problems in the most recent quarter on bugs related to its advertising programme.
The company said it’s addressing those issues, but that they bequeath likely weigh on its advertising business in the near term.
Net income was $37 million US, or 5 cents per parcel. Removing non-recurring charges, per-share profit was 17 cents, 3 cents shy of Embankment Street expectations, according to a survey of industry analysts by FactSet.
It was a 65 per cent call on from last year’s adjusted profit of $106 million.
Proceeds was $824 million, an increase of 9 per cent over the same period at year, but well short of Wall Street’s projections of $874 million.
Alcohol base grew 17%
Twitter says its daily user base increase in interested last quarter to 145 million, an increase of 17 per cent more than the 124 million in the same period of the previous year and compared to 139 million in the quondam quarter.
Twitter started disclosing its daily user base earlier this year. These are narcotic addicts who log into the site at least once a day and see advertisements on the platform. Twitter says the everyday metric is replacing its monthly user count, which it will no longer expose.
The company said it has made progress on what it calls the “health” of its stage. The microblogging service, which has been criticized in the past for not doing passably to combat abusive comments and users, says it has been proactively tagging and removing such content. CEO Jack Dorsey said Thursday that numberless than 50 per cent of the tweets removed for abusive content remain quarter were taken down before they were make public.
Twitter now projects fourth-quarter revenue of $940 million, the lower end of its preceding guidance range and short of the $1.1 billion analysts were looking for.
Advertising take came to $702 million for the quarter, an increase of 8 per cent over the third board last year.
The company said data licensing and other gross income totalled $121 million, an increase of 12 per cent over 2018’s third neighbourhood.