Date
28 March 2017
Twitter says its new products did not sell as well as expected in the first quarter. Photo: Internet
Twitter says its new products did not sell as well as expected in the first quarter. Photo: Internet

Twitter misses forecast, warns of tough year ahead

Twitter is warning of challenges for the rest of its financial year after a worse than expected first quarter.

It said its new products sold below expectations and revenue came in at US$436 million, up 74 percent year on year but below consensus forecasts, the BBC News reported.

The micro blogging firm warned that it expects the negative impact on its revenue to continue for the rest of the financial year.

“It is still early days for these products,” said Twitter chief executive Dick Costolo.

Twitter said it posted a net loss of US$162 million, an increase from the same period a year ago when it lost US$132.4 million.

However, monthly users of the service increased 18 percent 302 million for the first quarter fro a year earlier. 

The stock fell 18 percent after the results were released earlier than expected and before US markets closed.

Costolo said the firm is confident about the firm’s “long-term opportunity”.

“We have a strong pipeline that we believe will drive increased value for direct response advertisers in the future,” he said.

Twitter also said it was buying marketing technology firm TellApart and announced a deal with Google to improve its advertising performance measurement.

The firm said it expected revenue for the full year to be between US$2.17 billion to US$2.27 billion, lower than the US$2.3 billion to 2.35 billion range it forecast in December.

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