By Barbara Ortutay, Technology Writer
NEW YORK (AP) --Twitter's third-quarter revenue outpaced expectations, but investors concerned about user growth and holiday-quarter revenue clipped the company's stock price late Monday.
The San Francisco-based company has been trying to increase its user base amid concerns that it doesn't hold mass appeal in the way that the much-larger Facebook does. Its user base grew 23 percent to 284 million monthly active users in the three months that ended in September, which Forrester Research analyst Nate Elliott said was "better than nothing."
"It's hard to be ecstatic about those numbers when it's still a user base under 300 million people," Elliott said. "It's a social property less than a quarter (of the) size of Facebook."
To appeal to more people, Twitter has tried to make it easier to sign up for and use its service, and it got a boost this summer from promoting itself as a place to follow the World Cup. In July, its stock spiked 30 percent on the day it reported better-than-expected results and a 24 percent increase in its monthly user base.
This time, though, the growth apparently wasn't enough. Coupled with lackluster revenue guidance for the current period, shares fell 8 percent in extended trading.
To attract more users — and to get them to stay on Twitter longer, the company's main tasks are innovation and giving people new reasons to come back every day, said Elliott.
Recent changes, such as an update on what user profiles look like, shows Twitter is moving in the right direction. But, Elliott pointed out, "the basic experience on Twitter is identical to the basic experience on Twitter 9 years ago." Facebook, even with some notable missteps, has been able to stay ahead by regularly shifting its look and feel to get more people to join its site and stick around longer once they do.
Facebook dwarfs Twitter when it comes to users as well as advertising revenue. According to research firm eMarketer, Twitter accounted for half a percent of worldwide digital ad revenue in 2013. This is expected to increase to just under 1 percent this year, as digital ad spending grows to $140.7 billion. In comparison, Facebook is expected to increase its share of the market from 5.8 percent in 2013 to 8 percent this year, according to eMarketer.
Twitter Inc. posted a loss of $175 million, or 29 cents per share, in the latest quarter. That compares with a loss of $64.6 million, or 48 cents per share, a year earlier when it was still a private company. Adjusted earnings were 1 cent a share, matching expectations.
Revenue more than doubled to $361 million and beat the $351.5 million expected by analysts, according to FactSet. More than 85 percent of Twitter's total ad revenue came from mobile advertising, and about 80 percent of the its monthly users accessed it on mobile devices.
Twitter went public last November at a price of $26 per share. The stock peaked in December at $74.73 and then declined sharply. On Monday, it closed at $48.56, then fell 7.9 percent to $44.77 after the results came out.
“Scandal” cast will reunite for online script reading for hurricane relief in western North Carolina
The cast of ABC's hit political drama "Scandal" may need to brush up on their snappy, speedy delivery known as "Scandal-pace," because they're reuniting for a good cause. Its stars including Kerry Washington, Tony Goldwyn and Bellamy Young will take part in a live virtual script reading on Nov. 17 to raise money for hurricane relief in western North Carolina.
Beginning Friday, fans can go online and donate to reserve a spot for the online reading. Proceeds will benefit United Way of North Carolina. Everyone who donates will be able to take part in a virtual pre-event with the cast and Shonda Rhimes will give an introduction.
Additional guest stars will also be announced. The online fundraising platform Prizeo is also holding a contest where one person who donates online via their site will be selected to read a role from the script with the actors. The winner should not worry about the "Scandal"-pace, assured Young over Zoom.
"Whomever the lucky reader is can read at whatever pace they want," she said.
Young, who played Mellie Young, the first lady and later Republican presidential nominee on "Scandal," was born and raised in Asheville, North Carolina. She came up with the idea for the effort with a friend and took it to her fellow "Scandal" actors, who all jumped on board. Young said this is the first script reading the cast has all done together since the show ended after seven seasons in 2018.
Which episode they will be reading has not been announced yet.
Young said it's "been devastating" to see so many parts of her hometown badly damaged by Hurricane Helene, which ravaged western North Carolina one month ago.
To research the best use for donations, Young spoke with numerous political leaders, including North... Read More