Twitter shares crashed on Thursday following the release of the company’s 4th quarter earnings report.
CNBC reports that the social media company posted a fourth-quarter earnings report showing earnings of 16 cents per share on a revenue of $717 million. This fell short of analysts’ expectations, who had anticipated a higher revenue of approximately $740.1 million, according to an estimate from Thomson Reuters. Twitter had posted 12 cents per share on revenue of $479 million in 2016.
Twitter adjusted its guidance for the first quarter from the range of $75 million to $95 million, falling fall short of Wall Street’s expected estimate of $191.3 million. Twitter’s stock crashed a full 10 percent following the announcement of the earnings report. The company did report a 4% increase in active monthly users with 319 million users per month, up from 317 million users in 2016.
Twitter’s advertising revenue decreased from the year previously, with the company reporting revenue of $638 million. Of that, US revenue was down 5%, totaling $440 million, while international revenue totaled $277 million, an increase of 12% from 2016.
The company also reported a loss of $143.6 million in the 4th quarter, much worse than the reported $67.2 million loss in the same quarter for 2016, according to NASDAQ.
Twitter CEO Jack Dorsey discussed the poor performance of the company, saying, “While revenue growth continues to lag audience growth, we are applying the same focused…