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.