Twitter Inc. shares tumbled 11% in after-hours trades Tuesday following the company's miss of first-quarter revenue expectations and its downbeat outlook. Twitter reported a net loss of $79.7 million, or 12 cents per share, compared with a net loss of $162.4 million, or 25 cents per share, in the year-earlier period. Twitter reported adjusted earnings per share of 15 cents, above the FactSet-compiled consensus of 10 cents. It posted revenue of $594.5 million, above the $435.9 million recorded in the year-earlier period but below the FactSet consensus of $607.9 million. Twitter said the cause of the revenue miss was that "brand marketers did not increase spend as quickly as expected." The company reported 310 million monthly active users for the first quarter, which represented a 3% year-over-year increase and compares with 305 million in the previous quarter. For the second quarter, Twitter said it expected revenue in the range of $590 million to $610 million, compared with the FactSet consensus estimate of $677 million.
Copyright © 2016 MarketWatch, Inc.
Continue Reading Below