President Trump’s favorite social media network is having a rough morning.
Shares of Twitter Inc. fell more than 20% in pre-market trading today after the company reported lower-than-expected earnings and revenue for the third-quarter of 2019. Twitter’s user base, measured in daily active users, grew a healthy 17% to 145 million for the period, but it wasn’t enough to allay investor concern after executives blamed the financial shortfalls on advertising seasonality “headwinds” in July and August.
Here are the key numbers from the Q3 2019 report:
- Non-GAAP diluted net income per share: 17 cents
- Revenue: $824 million, up 9%
- Daily active users (monetizable): 145 million, up 17%
Analysts were expecting EPS of 20 cents on revenue of $874 million, according to a consensus cited by CNBC. Twitter also said its quarterly net income, $44 million, reflected revenue that was lower than anticipated.
On the plus said, the company said it is getting better at identifying and removing abusive content (debatable for anyone who actually uses Twitter) and that more than half of the abusive tweets that were removed during the quarter were “taken down without a bystander or first-person report.”
You can check out Twitter’s letter to shareholders here.