Twitter announced its quarterly earnings today, revealing that revenue rose 36 percent from last year to approximately $595 million USD. This is lower than analyst estimates of $607.8 million USD, but the company did significantly decrease its net profit loss by almost exactly 50 percent from last year.
Twitter also stated that the platform ended March 2016 with 310 million average monthly active users from 305 million in the previous quarter, a growth rate of only three percent.
Its modest growth and lower than expected advertising earnings have led the stock to plunge 12.3 percent to $15.58.
Advertising revenue totalled $531 million USD, an increase of 37 percent year over year, with mobile advertising representing a whopping 88 percent of total advertising revenue.
Twitter also reported that mobile monthly active users represented 83 percent of the platform’s total user base.
The social media platform predicted that in 2016 capital expenditures would be $300 to $425 million USD with an adjusted EBITDA margin in the range of 25 to 27 percent.
In the next quarter, it expects revenue to be in the range of $590 to $610 million with an expected EBITDA of $145 to $155 million USD.
Related reading: Apple Q2 2016 results: Apple falls short of predicted quarterly revenue