Twitter in meltdown: Stock tumbles 18% after disappointing figures accidentally released early in online gaffe

  • Twitter reported first-quarter revenue far below Wall Street estimates
  • Trading in its stock was halted after results were released early 
  • Revenue was $436m in the first quarter, far below estimates of $456m

Twitter's stock is falling sharply after the company's earnings, which were due to be released after the stock market closes, accidentally came out ahead of time.

Trading in its stock was halted Tuesday afternoon after word spread of the premature earnings release. 

 Twitter said it has informed the stock exchange, and was 'investigating the leak'. 

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Trading in its stock was halted Tuesday afternoon after word spread of the premature earnings release.

Trading in its stock was halted Tuesday afternoon after word spread of the premature earnings release.

When trading resumed, the stock fell more than 20 percent.

When trading resumed, the stock fell more than 20 percent.

Bloomberg News cited research firm Selerity, which tweeted the results and said the report was 'sourced' from Twitter's website and was not the result of a 'leak' or 'hack.'

Selerity said it got the results from Twitter's investor relations website.

'No leak. No hack,' the firm said in a tweet.

Twitter later posted the results on its website and emailed it to reporters.

'We asked @nyse to halt trading once we discovered our Q1 earnings numbers had leaked, and published our results as soon as possible,' the firm tweeted.

'We are investigating the source of the leak.'

When trading resumed, the stock fell more than 20 percent. 

Its adjusted earnings per share topped Wall Street estimates but revenue fell short of expectations. 

It also issued disappointing guidance for the current quarter and for the year.

'Revenue growth fell slightly short of our expectations due to lower-than-expected contribution from some of our newer direct response products,' said Chief Executive Dick Costolo.

'It is still early days for these products, and we have a strong pipeline that we believe will drive increased value for direct response advertisers in the future. 

'We remain confident in our strategy and in Twitter's long-term opportunity, and our focus remains on creating sustainable shareholder value by executing against our three priorities: strengthening the core, reducing barriers to consumption and delivering new apps and services.' 

Twitter revenue was $436 million in the first quarter, far below estimates of $456 million.

Twitter's adjusted earnings were 7 cents, better than 4 cents analysts expected, Selerity said in another tweet.

Revenue was $436m in the first quarter, far below estimates of $456m

Revenue was $436m in the first quarter, far below estimates of $456m

For the second quarter, the company said it expects revenue between $470 million and $485 million, below analyst estimates of $538 million.

For the full year, the company expects sales of $2.17 billion to $2.27 billion, also below estimates of $2.37 billion.

The inadvertent earnings release created chaos in what is normally an orderly release of information. 

A Twitter spokesman could not be immediately reached for comment.

Average monthly active users were in line with expectations at 302 million. 

But monthly active users came in at 241.6 million, below expectations of 243 million.

Shares have fallen as much as 20% after Twitter reported first-quarter revenue far below Wall Street estimates.

Shares have fallen as much as 20% after Twitter reported first-quarter revenue far below Wall Street estimates.

Twitter announced that it would buy TellApart Inc., a marketing technology company for retailers and e-commerce advertisers, to 'significantly expand Twitter's direct response capabilities for marketers.'

Twitter also announced a partnership with Google's DoubleClick platform to improve advertising performance measurement for Twitter direct response marketers. As part of the partnership, Twitter will also make its advertising inventory available through the DoubleClick Bid Manager

 

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