OAKLAND, Calif. —
Twitter’s stock tumbled Thursday after the company failed to show that it’s weathering the pandemic-borne digital advertising slump the same way its bigger rivals Facebook and Google are.

The San Francisco-based social company’s higher expenses outweighed its revenue growth in the first three months of the year, leading to a loss of $8.4 million.

And when asked during a conference call how April looked in terms of revenue, executives pointed back to the second half of March — when advertising declined.

That period is “the best time frame to look at if you want to think about what it’s been like for us,” Twitter’s Chief Financial Officer Ned Segal said.

Facebook, in contrast, said on Wednesday that after a March decline, it saw “signs of stability” in the first three weeks of April. And it said ad revenue during that period has been flat compared with the year-ago period.

Google parent company Alphabet also posted results this week that didn’t look “quite as bad as some people had feared,” said Edward Jones analyst David Heger.

All three companies are seeing an increase in usage, since the virus outbreak has forced people to stay at home. Twitter reported that average daily users grew 24% year over year, the highest growth rate in the company’s history.

Twitter has added 14 million daily users since the previous quarter. The company said growth was driven by seasonal strength, product improvements and interest in coronavirus.

Last year, Twitter started disclosing its daily user base, or the number of users who log in at least once a day and see ads on the platform. The daily metric has replaced its monthly user count, which Twitter said it will no longer disclose. Other companies, such as Facebook, give both daily and monthly counts.

For the three months ended in March, Twitter amounted to 1 cent per share, on revenue of $807.6 million. A year ago, the company earned $190.8 million, or 25 cents per share, on a big tax benefit. Revenue totaled $786.9 million.

On average analysts surveyed by FactSet forecast quarterly earnings per share of 10 cents on revenue of $783 million.

The company previously withdrew full-year financial guidance and said Thursday it’s not providing second-quarter estimates either.

Its shares fell $2.75, or 8.8%, to $28.34 in afternoon trading. The stock initially rose in premarket trading after Twitter put out its earnings results, but declined following the conference call with analysts.

AP Business Writer Dorothea Degen in New York contributed to this story.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

‘Singles economy’ to drive consumption, report says

The rising number of single people in China will spur new consumption and may become a major consumption power in the future, a recent report by Nielsen said. The report came as concerted efforts were made to drive up domestic…

Amazon wages legal battle with New York attorney general over pandemic safety response

(CNN Business)Amazon is waging a legal battle with New York’s attorney general over the company’s Covid-19 protections for workers, filing a federal lawsuit to preempt the state’s demands for more safety measures. In a complaint Friday, Amazon (AMZN) rejected an…

Greggs will pay workers who self isolate due to coronavirus

Greggs workers will be paid for their full contracted hours if they self-isolate themselves due to the coronavirus, the bakery chain’s chief executive has said. The stance sets Greggs apart from some other companies that have said they will pay £94.25…

China announces retaliatory measures on US media outlets

Beijing (CNN Business)China just announced some drastic retaliatory measures against several US media outlets, after Washington designated five Chinese state media outlets as “foreign missions” and capped the number of Chinese journalists working for those outlets in the United States.…