This caused the stock price to plunge 15% in after-hours trading. The stock closed at $52.43, up $3.92 (8.1%).
|TWTR||Twitter INC.||52.43||+3.90||+ 8.04%|
The San Francisco company earned $28.6 million (4 cents per share) during the July-September period. This is a 22% decrease from the previous year, in part due to increased costs associated with COVID-19. Excluding the one-time items, earnings per share were 19 cents.
Revenue grew by 14% from $823.7 million to $936.2 million.
Twitter had an average of 184 million daily users in the third quarter, but it was lower than the analyst’s estimate of 195.6 million. The company no longer discloses monthly user figures.
“The number of daily viewers increased by 42 million last year as people from all over the world came to Twitter to find out about the topics and events that interest them most. mDAU rose to 188 million, up 29% year over year. ., It was driven by a global conversation about current events and product improvement,” said Jack Dorsey, Twitter CEO.
Analysts were expecting a loss of 10 cents per share, an adjusted revenue of 6 cents per share, and a return of $777.3 million, according to FactSet’s poll.
The company said it had predicted uncertainty in the future due in part to the upcoming US elections, and said it was “hard to predict how advertiser behavior could change.”
The Associated Press contributed to this report.