Twitter’s quarterly earnings reports are proof that you can beat the Street and still disappoint your investors. Despite the fact that the company brought in $361 million in revenue when analysts were expecting closer to $351 million, the company’s stock plummeted ten percent in after-hours trading following its third quarter earnings release.
The culprit, as ever, is Twitter’s growth. The company reported 284 million monthly active users in its third quarter earnings report, 13 million more than in the second quarter. But in the second quarter, Twitter had added 16 million more from the quarter before. In short, Twitter’s growth rate is slowing. Not good news for a company still early in its public market days.
CEO Dick Costolo addressed the concerns early in his opening remarks on the earnings call. “It’s more critical then ever that we increase our pace of execution,” Costolo said. He wants to see “faster…
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