The big picture: Twitter’s stock value is down more than 21 percent on the day after announcing third quarter 2019 earnings that missed badly. Despite the slip, Twitter CEO Jack Dorsey was optimistic about the progress his company continues to make with regard to removing abusive content.
Twitter reported total revenue of $824 million for the quarter ending September 30, a nine percent increase year-over-year. Wall Street analysts, however, were expecting closer to $870 million according to CNBC. Earnings per share checked in at $0.17 versus an expected $0.20.
The company’s costs and expenses for the quarter totaled $780 million, up 17 percent year-over-year.
Twitter cited a number of “headwinds” affecting its Q3 performance including bugs affecting revenue products and greater-than-expected advertising seasonality beginning in July and continuing into August. Slower business over the summer could have been a result of a “relatively lighter slate of big events and launches” during the aforementioned months.
As of writing, Twitter’s stock is trading at $30.57 after closing at $38.83 on Wednesday. It's approaching the company's lowest share value of the year which occurred in January when the stock was trading just south of $28.
On the bright side, Twitter said its average monetizable daily active user count was 145 million, up from 139 million last quarter and 124 million a year ago.
Looking ahead, Twitter is forecasting total revenue between $940 million and $1.01 billion and operating income between $130 million and $170 million.
Masthead credit: Twitter logo by Ink Drop