Twitter Shares Tank After Report Of Flat User Growth

Shares of Twitter Inc. were down 8% in premarket trade after the company reported second-quarter earnings expectations with flat user growth. Twitter reported a net loss of $116.5 million, or a loss of 16 cents per share, compared with a loss of $107 million, or a loss of 15 cents per share, in the year-earlier period. Twitter reported adjusted earnings per share of 8 cents, above the FactSet consensus of 5 cents. Revenue was $573.9 million, down from $602 million in the year-earlier period and above the FactSet consensus of $537.5 million. It reported 328 million monthly active users, up 5% year-over-year, but in line with 328 million reported in the previous quarter. The FactSet consensus was for 328.8 million. Daily active users increased 12% year-over-year, compared with an increase of 14% last quarter. Twitter expects adjusted EBITDA to be between $130 million and $150 million for the third quarter and expects total non-GAAP expenses to fall 3% to 6% compared to 2016. Shares of Twitter have gained 18% in the past three months, while the S&P 500 has gained 3.7%.