Twitter Shares Drop After Reporting Q1 Results

This week Facebook indicated that the social media giant has seen flat YOY ad revenue trends in the month of April.

Social media platform Twitter on the other hand could not provide that kind of stability. The company instead disclosed that ad revenue dropped 27% from March 11 to March 31 as the pandemic worsened.

When asked to comment on April trends, a Twitter executive pointed to comments made in the last few weeks of March, saying, “that gives you a good sense for what it’s been like for us,” according to a FactSet transcript of the company’s earnings call.

“Twitter highlighted that the pressure on international revenues has somewhat subsided since late March as specific regions have lifted lockdown or shelter-in-place restrictions,” remarked MKM Partners analyst Rohit Kulkarni in a note.

The company announced their first quarter financial results on Thursday.

“In this difficult time, Twitter’s purpose is proving more vital than ever. We are helping the world stay informed, and providing a unique way for people to come together to help or simply entertain and remind one another of our connections. We’ve delivered our strongest ever year over year mDAU growth,” said Jack Dorsey, Twitter’s CEO.

“Public conversation can help the world learn faster, solve common problems, and realize we’re all in this together. Our task now is to make sure we retain that connection over the long term with the many people new to Twitter.”

“Revenue was $808 million in Q1, up 3% year over year, reflecting a strong start to the quarter that was impacted by widespread economic disruption related to COVID-19 in March,” said Ned Segal, Twitter’s CFO. “We are shifting resources and priorities to increase focus on our revenue products and reduce expense growth, ensuring our resources are allocated against our most important work. Revenue product has been elevated to our top company priority, as the current environment validates and creates even more urgency around delivering more direct response ad formats.”

Twitter reported revenue of $808 million from $787 million in the year-prior quarter, whereas analysts were modeling $783 million.

Disclaimer: We have no position in Twitter Inc. (NYSE: TWTR) and have not been compensated for this article.