Twitter revenues hit by lower advertising and low demand

Twitter reported third-quarter earnings and profits on Thursday below expectations, something the company attributed to problems with advertising caused by product errors and unusually low demand during the summer, which caused its shares to plummet 15 %.

The actions of the micromassage platform fell to $ 33 in operations prior to the start of the session.

Twitter revenues rose 9% from a year ago to $ 824 million, below Wall Street estimates of $ 874 million, based on data from IBES of Refinitiv. The total billing for advertising reached 702 million dollars, an increase of 8% in the interannual comparison.

The third quarter net profit reached $ 37 million, or $ 0.05 per share. In the same period last year, the company reported a profit of $ 789 million and $ 106 million in profit adjusted for extraordinary items.

Analysts projected a quarterly profit of 161.5 million dollars.

Twitter had predicted that the growth of its revenues in the third quarter would be lower than seen in the previous two, partly due to the end of some old advertising formats.

But he also encountered some unexpected problems, such as mistakes that impacted his ability to direct notices to a specific audience and share the data with his partners, in addition to a smaller number of events than in the previous boreal summer.

For the fourth quarter, Twitter expects total revenues to reach between $ 940 million and $ 1,010 million. Wall Street expects an average of 1.060 million dollars.

However, the social network noted a new increase in the daily activity of users, who see ads on the site, exceeding analyst expectations.

The company stopped reporting the monthly number of active users and instead began to deliver a measurement of people exposed daily to advertising on the site in Twitter applications that can display notices.

The CEO of Twitter Inc, Jack Dorsey, said that the growth of monetizable daily activity of users was driven by improvements in products, including tools to facilitate navigation and more proactively identify abusive content to eliminate them.