Twitter Inc. on Thursday reported increased quarterly revenue on the strength of ad sales, but its user numbers fell short of expectations.
Shares of Twitter fell more than 12% after the social media company missed on user growth in the first quarter and offered lower-than-expected revenue estimates for the future.
The company reported adjusted earnings of 16 cents a share on revenue of $1.04 billion. Analysts expected Twitter to report earnings of 14 cents on revenue of $1.03 billion, according to FactSet.
The company said it expects second-quarter revenue in the range of $980 million to $1.08 billion. The midrange of $1.03 billion was below analyst estimates of $1.06 billion.
The San Francisco-based company said its average monetizable daily active users increased 20% year over year to 199 million, but analysts had expected that number to grow to 200 million.
Ad revenue climbed 32% year over year to $899 million.
The company said its user growth in the U.S. was 13%, and 22% internationally. While U.S. revenue outdid international revenue $556 million to $480 million, revenue growth followed the user-growth trend, with U.S. revenue growing 19% and international revenue rising 41% year over year.
On a conference call with analysts, Twitter CEO Jack Dorsey also offered some insight into how the company is thinking about content moderation. The company has faced criticism for suspending accounts, including that of The Post, and limiting the reach of stories that it deems violate its rules. Though some say it’s failed to clearly define its platform rules.
Dorsey said the company wants to give users more tools to contribute to content moderation because he doesn’t think Twitter should be “the arbiter of all these things.”
“It should be more of the wisdom of the crowds and we’re trying to find that right balance,” he said.