It is that time of the year when the latest figures and general financial standing of companies come to light. This is of course, the latest quarterly figures. Earlier today T-Mobile released their latest quarterly results and noting that they saw as many as 2.2 million net subscriber adds. Since then more results have started to come through for other companies, including Twitter and it seems for the microblogging site, the results are a somewhat mixed bag.
First the good. According to the results, the number of monthly users for the first quarter has increased up from 305 million (at the end of 2015) to 310 million. A figure which not only represents a growth quarter-over-quarter, but is also one which has beaten Wall Street expectations, which had previously suggested the Q1 figure would be closer to the 308 million marker. So in terms of actual user numbers, the quarter proved very good for Twitter, with the company seeing as many as 5 million additional users being added to their books. However, what is gaining more attention at the moment is the revenue results that have now been released.
Twitter has announced that revenue for Q1 came in at $595 million. In the shortest of terms, this is an increase and a substantial one equating to a year-over-year growth of 36-percent. That said and in contrast to the monthly user numbers, the overall revenue figure is substantially below Wall Street expectations, which had suggested as much as $607.8 million would be announced today. What is even more interesting, is the latest figures have led to today’s release including a lower revenue expectation for Q2. It has been expected (before today) by analysts that the Q2 figure could reach as much as $677.6 million. However, based on the current $595 million announced, Twitter has revised their Q2 revenue outlook to $610 million. Substantially lower than expectations and not much more than what had been expected to be announced today for Q1. A revising which in the short time since the announcement, has caused Twitter’s stock to drop by about 10-percent. One of the reasons given by Twitter for the low Q1 figure is that brand digital advertisers who use Twitter “did not increase spend as quickly as expected.” Those interested in reading the latest quarterly results from Twitter in more detail, can do so by heading through the source link below.