May 1, according to foreign media reports,Twitter first-quarter results released thursday local time showed a sharp increase in traffic last quarter to get timely information about the new crown, the company's main source of revenue advertising business was hit hard by the epidemic.Dragged down by the adverse information, twitter fell 7.75%, its biggest one-day decline since March 18.
At the New York Stock Exchange on Thursday, Twitter shares fell $2.41 to $28.68, or 7.75 percent. The shares fell another $0.58, or 2.02 percent, to $28.10 in after-hours trading.
Twitter's first quarter revenue was $808 million, up 3% from a year earlier, the company's smallest quarterly revenue increase in more than two years, as its advertising business declined due to the outbreak.
From March 11 to the end of the first quarter, sales fell 27% year-on-year, the company said, and April showed a similar trend. This decline is particularly evident in the US, Twitter's main market.
Like other social platforms such as snap and Facebook, Twitter's numbers challenge the long held view that the growth of users is directly proportional to the growth of advertising revenue.
Twitter now has 166 million users a day, a 24% increase over the same period last year, and 152 million users at the end of 2019. This is the largest quarter of year-on-year growth since the company began reporting user numbers in 2016. Twitter attributed the growth to "typical seasonal forces, ongoing product improvements, and global interactions related to the covid-19 epidemic."
Facebook also warned on Wednesday that it "could see a more serious contraction in the advertising industry."
Twitter said Thursday that improving its advertising products is now the company's "top priority.". In a letter to shareholders, the company said improving its advertising products could generate more advertising demand in a downturn.
Twitter attracts brand marketing ads that are easier to measure, grow faster, and are more resilient during a crisis.
Twitter posted a net loss of $8 million in the first quarter, its first quarterly loss in more than two years. The company had previously announced a downgrade of its full year performance forecast and expected an operating loss in the first quarter. On Thursday, the company did not release its forecast for future performance.
Twitter plans to cut costs by slowing hiring and reducing travel and marketing activities. In fact, the epidemic caused employees to work from home and has stopped company related activities. But the company still plans to build a new data center by 2020, which it announced earlier.
Earlier this year, activist shareholders tried to oust Jack Dorsey from his job as chief executive. However, the efforts of radical shareholders have not been successful. Both sides reached consensus on performance goals such as twitter revenue growth. However, some analysts believe that the outbreak has had a serious impact on twitter, and the stability of Dorsey's CEO position may be affected. (Tianmen Mountain)