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Twitter Shares Tank 8% Despite Q3 Earnings Beat On Lackluster User Growth, Weak Guidance

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Twitter Shares Tank 8% Despite Q3 Earnings Beat On Lackluster User Growth, Weak Guidance


Following the bell, Twitter introduced its third quarter financial performance, including revenue of $569.2 million, and adjusted Income per share of $Zero.10. The market had expected the popular social keep to earn $0.05 per share off of a cool $559.6 million in revenue.

Twitter shares are down sharply, following its Salary beat.

Twitter announced that it has 320 million month-to-month active users. That figure compares to its year-in the past tally of 284 million monthly actives, and a sequentially preceding 316 million figure.

Concerns relating to Twitter’s apparently chronically lackluster Person Growth has been a key investor challenge. Today, The Company didn’t assuage these Considerations. When You were at a loss for words why Buyers are promoting Twitter shares like proverbial carb muffins to tree-fellers, that’s the explanation.

Twitter has proven a monster in relation to revenue Growth. It’s top line grew Fifty Eight p.c compared to its year-in the past tally. But negative Person Growth is an inherent bargain on future cash flows. And, as you will surely remember, Traders like those.

The Corporate derived 86 p.c of its merchandising income from cell usage of its service, a robust determine. Twitter is likely one of the only a few firms that has managed to master pulling greenbacks out of small monitors.

Still, Traders’ chief problem is still unabated.

Looking ahead, Twitter predicts that it will have income between $695 and $710 million within the current quarter. That reality trails side road estimates of $739.7 million with the aid of a major, and painful deficit.

The Use Of standard accounting techniques, Twitter misplaced $131.7 million within the quarter. Traders have lengthy valued Twitter no longer on its GAAP metrics, But on adjusted figures to permit for oceans of share-based totally compensation. Possibly so one can now not fly given The Corporate’s different concerns.

Featured Image: Bryce Durbin

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