Twitter counts on new math to show user growth
Based on the new tally, the company on Tuesday reported 310 million people tweeted actively in the first three months of 2016, up 2 percent from the fourth quarter of last year, which had 305 million users. The revised user count both simplifies Twitter's disclosures and puts its user growth in a slightly better light, compared with the zero growth in monthly active users it reported in the fourth quarter of 2015.
Wall Street usually cares more about CEO Jack Dorsey's ability to attract new tweeters than it does about Twitter's sales and profit since user growth indicates Twitter's chances of reaching a mass-market audience. This time, though, investors did care about Twitter's revenue, and weren't happy about it.
Twitter on Tuesday reported \\$594.5 million in sales for the three months that ended in March. Analysts surveyed by Thomson Reuters expected, on average, \\$607.8 million in revenue. The shares plunged nearly 12 percent in after hours trading.
Dorsey is working to make the microblogging service less confusing and more visually appealing to new users. He also announced in April that Twitter had won the rights to stream 10 of the NFL's Thursday night games this season. (Twitter's CFO Anthony Noto was previously CFO of the NFL.)
Profit that excludes some costs, such as employee stock compensation was 15 cents a share, compared with the analysts' estimate of 10 cents.
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