Twitter Inc has just posted its first quarter revenue and they are not that good.
Twitter Inc fell short of its earlier estimates and its sales forecast were also cut as the company continues to struggle in their pursuit of attracting more advertisers and users.
The early release of the results so Twitter’s stock falling by 18%.
Bloomberg is reporting that revenue has become a big issue for investors, who have spent most of the past few years criticizing the slow pace of user growth. In a statement that was issued out by Twitter on Tuesday, sales for its second quarter are expected to be between $470 million and $485million missing earlier projections sales of $538.1 million which had been set by analysts’.
The full-year revenue guidance was cut by Twitter from its initial range of $2.3 billion to $2.35 billion, to now $2.17 billion to $2.27 billion.
Victor Anthony, an analyst at Axiom Capital Management which has a buy rating on Twitter, said that, “It calls into question why they didn’t see this coming.”
Twitter has been under fire of late from investors who want the company to come up with new features which will increase their users as well as their revenues.
According to Brian Wieser, an analyst at Pivotal Research Group, “When you’re communicating with investors there’s some expectation that you’ll actually deliver.”
Wieser, who has a holding rate on Twitter’s stock, added that, “The message needs to be matched by numbers, or Twitter’s credibility starts to become an issue.”