Twitter tumbles after muted active users growth
Shares in Twitter tumbled 11% in after hour trading late on Tuesday in New York, after the social media giant revealed its pace of growth in active users was the slowest in two years.
Twitter Inc
$53.70
11:00 14/10/24
The San Francisco-based group said it added four million average monthly users in the three months to the end of September, bringing its tally to 320m, although the figure fell short of analysts’ expectations.
Meanwhile, revenue jumped 58% year-on-year to $569m, while earnings before interest, tax, depreciation and amortisation surged 108% to $142m.
As a result of the increased competition among social media, the group lowered its forecast for fourth quarter revenue to between $695m and $710m.
"We've simplified our roadmap and organization around a few big bets across Twitter, Periscope, and Vine that we believe represent our largest opportunities for growth," said group chief executive Jack Dorsey.
Dorsey, who returned to the company he had co-founded in June to serve as interim chief executive, has sanctioned the departure of over 300 of staff since his return, adding the group plans to utilise the funds it saved to invest in unspecified priority products.
Twitter shares were down 10.22% to $31.30 at 1027 GMT on Wednesday.