Twitter’s monetizable daily active users hit 199 million in the March quarter, shy of the 200 million Wall Street anticipated but up by seven million from year-end 2000 and significantly higher than the 166 million in the year ago period.
Revenue of $1.04 billion, up 28% from $808 million the year prior, also fell short of forecasts. Ad revenue of $899 million was up 32%.
Twitter stock plunged, down 11% in after-hours trading as it predicted a trough in new user growth in the current second quarter on tough comparisons from a pandemic-fueled 2020.
The social media company that permanently banned former President Donald Trump from the platform in January, reported earnings per share of 16 cents — above estimates.
In a letter to shareholders, the company said a pandemic related surge last buoyed users and creates challenging comps that may lead to mDAU growth rates in the low double digits on a year-over-year basis in Q2, Q3, and Q4 — with the low point in terms of growth likely in the current Q2.
CEO Jack Dorsey also talked about advertising advances, civil conversation and health. The company has started proactively applying labels to Tweets that may contain misleading information about COVID-19 vaccines. “Since introducing guidance, it have enforced our policies against 11.5 million accounts worldwide,” he said.
Dorsey along with fellow social media and tech CEOS, has been a staple of Congressional hearings on the power of the Internet to shape opinion, spread misinformation and censor voices. Investors will be more focused on financial metrics and forecasts heading into a conference call slated for 6 pm ET.