Twitter Nosedives On Q2 Guidance, Slower US DAU Growth

Social media platform Twitter Inc TWTR reported first-quarter financial results after market close Thursday.

What Happened: First-quarter revenue of $1.04 billion was a year-over-year increase of 28%. The revenue figure came in higher than the Street consensus of $1.03 billion.

Twitter reported adjusted earnings of 16 cents per share, beating estimates of 14 cents per share.

Advertising revenue of $899 million in the quarter was up 32% year-over-year. Growth of the segment was led by 19% higher costs per ads and 11% growth in advertising engagement.

Related Link: Twitter Unveils Professional Profiles, An Attempt to Rival LinkedIn?

Revenue for the U.S. segment grew 19% year-over-year to $556 million. International revenue of $480 million was up 41% year-over-year.

Average monetizable daily active users hit 199 million in the first quarter, up 20% year-over-year. The U.S. segment had monetizable DAU of 38 million, up from 33 million last year and 37 million in the fourth quarter. International monetizable DAU hit 162 million, up from 133 million last year and 155 million in the fourth quarter.

What’s Next: Twitter is guiding for second-quarter revenue to come in a range of $980 million to $1.08 billion. The consensus is for revenue to hit $1.06 billion in the second quarter.

The company expects revenue to grow faster than expenses in fiscal 2021.

TWTR Price Action: Shares of Twitter are down 9.7% to $58.75 in after-hours trading Thursday.