Twitter on Tuesday posted first quarter earnings that reveal a thriving advertising business but investors were more focused on its slow user growth. The microblogging platform attracted 255 million monthly active users for the quarter which represented growth of just 5.8 percent compared to the previous quarter.
That’s up from the decreasing pace of user growth over the course of 2013 but Wall Street was hoping for more – in the 257 million range according to MarketWatch.
Twitter CEO Dick Costolo offered little explanation for the growth, saying there was no specific thing or change that contributed to the majority of growth. Instead, it was a combination of some of the improvements they’ve made to their recommendations and their global rollout.
User growth aside, Twitter turned in $250 million in revenue which is a 119 percent increase compared to the year-ago period. Of that, $226 million came from ad revenue while the remaining $24 million came from data licensing programs. But even these figures weren’t enough to keep investors happy and they let the company know in after hours trading.
As of writing, Twitter share value is down more than 11 percent which puts the total value at $37.83 per share. That’s an all-time low for the stock since going public last November when it opened at $45.10 after pricing at $26 the night before.