Twitter shares closed lower in the US Wednesday, although pre-market activity is positive, after releasing first-quarter earnings results. The tech business achieved a net profit of $61 million and added a healthy stream of new users to the platform during the first three months of the year.
However, the tech firm is cautious over the future pace of revenue growth.
Twitter shares ended the US Wednesday trading session 2.36% lower at €29.75. However, the stock is in positive territory in pre-market activity Thursday.
Twitter Q1 earnings details
First quarter revenues grew 21% from a year earlier to $665 million, the social media platform reported. Twitter also added 6 million new users to the platform in Q1, representing 3% user growth. Daily active user growth, meanwhile was 10%.
“The first quarter was a strong start to the year,” said Twitter CEO, Jack Dorsey.
“We grew our audience and engagement, marking another quarter of double digit year-over-year DAU growth, and continued our work to make it easier to follow topics, interests, and events on Twitter,” Dorsey added.
However, the tech business added a cautious tone to its outlook, warning it expected the pace of revenue growth will slow.
“As we look ahead to the remainder of the year, we remain optimistic,” Dorsey said in a letter to shareholders.
But, he went on to say that in the face of the strong second half of 2017, “we continue to believe that our sequential growth rates for total revenue for the remainder of 2018 will resemble the sequential growth rates for total revenue in 2016.”
Trump, Kanye Twitter row
In separate news, US music mogul Kanye West has come under fire from his followers after he tweeted support for President Donald Trump.
“You don't have to agree with Trump but the mob can't make me not love him,” Kanye tweeted amid a series of pro-Trump comments.
Trump thanked the rapper for his support, tweeting: “Thank you Kanye, very cool!”
And, while some Twitter users commented on data showing a 9 million decline n the number of West’s followers during his Trump supportive comments, Twitter said it was a technical glitch and that West still has some 27 million.