Twitter posted much stronger than expected Q3 results thanks to increased demand for advertisers, but declining profits and lower-than-expected daily users of analysts.
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That has sent stocks down 15% in after-hours trading. Shares closed up $ 3.92, or 8.1%, at $ 52.43.
|TWTR||TWITTER INC.||52.43||+3.90||+ 8.04%|
The San Francisco company made $ 28.66 million, or 4 cents per share, between July and September. This is down 22% from a year earlier, due to costs. The higher part is related to COVID-19. Excluding one-off items, earnings are 19 cents per share.
Revenue increased 14% from $ 823.7 million to $ 936.2 million.
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On average, in Q3, Twitter had 187 million daily users, but it was well below analysts’ expectations of 195.6 million. The company no longer discloses monthly user figures.
“We increased our daily audience to 42 million last year when people around the world went to Twitter to learn about the topics and events they were most interested in. I am so glad mDAU was. up 29% year-on-year to 187 million, driven by global conversation around current events and product improvements, ”said Jack Dorsey, CEO of Twitter.
Analysts expected a 10-cent-per-share loss, 6-cent-per-share adjusted earnings, and $ 777.3 million in revenue, according to a FactSet poll.
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The company has been predicting the uncertainty that will occur in the future, partly due to the upcoming US election, and said “it is difficult to predict how advertisers’ behavior might change. “.
Associated Press contributed to this report.