Twitter Inc shares tumbled in premarket trading on Thursday after the social media platform reported weaker- than - expected growth in monthly active users in the second quarter.
Amid fierce competition from Facebook and Snap Inc ’ s messaging app , Snapchat , Twitter ’ s average monthly active users was 328 million in the three months through June 30.
Analysts were expecting 328 .8 million , according to financial data and analytics firm, FactSet .
In the first quarter , the company had reported that it added nine million more monthly active users ( MAU) than expected.
“ What matters is MAU . Overall MAU were flat, and U.S . MAU was down , ” said Michael Pachter , Managing Director at Wedbush Securities.
Monthly active users , a key performance indicator for social networking services, is typically calculated by tabulating the number of users who have logged in and logged out during the 30- day period .
Twitter ’ s second -quarter net loss widened as it took a 55 million dollar impairment charge and revenue fell 4. 7 per cent.
The company has been trying to boost revenue through live - streaming deals , but suffered a setback in April when it lost a deal to livestream NFL games this year to Amazon.com Inc .
Advertising revenue fell eight per cent to 489 million dollars , but well exceeded the 458 . 1 million dollars estimate.
The company ’ s net loss widened to 116 .5 million dollars or 16 cents per share in the second quarter ended June 30 from 107 .2 million dollars or 15 cents per share, a year earlier.
Excluding items, the company earned eight cents per share.
Revenue fell about 4 .7 per cent to 573 .9 million dollars , the second time it has fallen since Twitter ’ s debut in 2013.
Shares of Twitter fell 8.4 per cent to 17 .96 dollars in premarket trading on Thursday, following a gain of 18 per cent in the past three months.
NAN .
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