SAN FRANCISCO–Twitter booked a net loss in the first quarter because of stock compensation costs, but its results surpassed Wall Street’s expectations thanks to a sharp increase in advertising revenue.
Investors were looking for stronger user growth from the short messaging service, however, and company’s stock declined sharply in after-hours trading.
Twitter Inc. said Tuesday that it had a loss of US$132.4 million, or 23 cents per share, in the January-March quarter. That compares with a loss of US$27 million, or 21 cents per share, a year ago when Twitter was still privately held. Adjusted earnings were US$183,000, or roughly breakeven on a per share basis.
Revenue more than doubled to US$250 million from US$114 million. Twitter’s advertising revenue was US$226 million, about 80 percent of which came from mobile advertising.
Analysts polled by FactSet had expected an adjusted loss of 3 cents per share on revenue of US$241.5 million. Twitter’s own forecast in February was for revenue between US$230 million and US$240 million.
Shares of Twitter fell US$4.09, or 9.6 percent, to US$38.53 in after-hours trading after the results came out. The stock had closed up US$1.89, or 4.6 percent, at US$42.62.