Twitter is the latest social network (see also: Snapchat) to see its share-price hit after quarterly financials that didn’t shape up to analysts’ expectations.
Twitter’s ‘monetisable daily active users’ (mDAUs, its own metric) grew by 17% year-on-year to 145 million people, while its revenues were up 9% to $824m. However, it’s the latter that was below analysts’ forecasts – TechCrunch reports they were anticipating $874m-$883m – so Twitter’s stock plunged by 20% in pre-market trading.
In its letter to shareholders, Twitter cited “a number of headwinds including revenue product issues and greater-than-expected advertising seasonality in July and August” as the reason for missing those forecasts. One interesting stat from the financials: Japan is Twitter’s second largest market in terms of revenue: it accounted for 16% of Twitter’s revenue in Q3 this year.