Shares of Twitter fell 17% early in Friday after the company’s daily active users in the third quarter fell well below analyst expectations
As social media company crushed Wall Street revenue forecast, user growth only reached 187 million daily users, up from 195 million forecast The number was still 29% higher than a year ago
Company’s total revenue increased 14% to $ 936 million, beating Wall Street analysts’ estimate of $ 777 million Twitter ad revenue jumped 15% year-over-year to $ 808 million despite declining ad spend this year due to widespread response to civil unrest in the United States
The increase in ad revenue was in large part due to advertisers increasing their ad spend after the return of live events and previously delayed product launches, said Ned Segal, chief financial officer of Twitter, in a press release
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Twitter warned that as the US election approaches, it would be « difficult to predict » how advertiser behavior might change
The company’s third quarter results follow a tumultuous year including a massive bitcoin-related hack that compromised 130 accounts, prompting the FBI to open an investigation into the scam
Separately, Twitter CEO Jack Dorsey this week defended the moderation of the company’s content and has repeatedly denied in a Senate hearing that the company has the power to influence elections
Shares of Twitter opened 17% below about $ 43 a share on Friday, but its share is up 75% since the start of the year
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World News – UA – Twitter Plunges 17% After Posting Significant Drop in Daily Active Users in Q3
