Twitter’s stock is down more than 10% in after-hours trading after the company reported Q1 revenue that completely missed Wall Street targets and offered a forecast for the current quarter that fell below even the most modest expectations.
Here are the big numbers that have investors bail on the company.
- Q1 Revenue: $595 million, up 36% year-on-year, and below the average analyst expectation of $607.8 million.
- EPS (adjusted): 15 cents, versus the average analyst expectation of 10 cents
Monthly users: 310 million, up from 305 million at the end of 2015
- Q2 Revenue guidance: $590 million to $610 million, compared to the average analyst expectation of $677.6 million.
Twitter said Q1 revenue was down because brand marketers “did not increase spend as quickly as expected” on the network.
At the same time, Twitter’s monthly users are growing at a very slow pace and has even become stagnant over the past year.
The company posted a net loss of $80 million in Q1, an improvement over the $162.4 million in lost in the same period the previous year.
It’s only been a short time since co-founder Jack Dorsey took back over the reigns as CEO, but so far it hasn’t seemed to make much of a difference.