By Emily Bary
Company saw 27% drop in ad revenue from March 11 to March 31
After Facebook (FB) indicated Wednesday that it's seen flat year-over-year ad revenue trends in April (), Twitter's (TWTR) management team didn't point to the same sort of stability.
Twitter disclosed that ad revenue dropped 27% from March 11 to March 31 as the pandemic worsened, and when asked to comment on April trends, a Twitter executive pointed back to the commentary on the last few weeks of March, saying, "that gives you a good sense for what it's been like for us," according to a FactSet transcript of the company's earnings call.
The commentary helped reverse the premarket movement in Twitter's stock after it initially gained premarket following the earnings release. Shares are now down 6% in morning trading.
Read: Facebook earnings show company is in a better spot than peers during ad slowdown ()
"Twitter highlighted that the pressure on international revenues has somewhat subsided since late March as specific regions have lifted lockdown or shelter-in-place restrictions," wrote MKM Partners analyst Rohit Kulkarni. However, it seems as if U.S. trends have neither improved nor worsened for Twitter.
The vague comments about April outweighed better-than-expected results for the March quarter.
The company reported a net loss of $8 million, or 1 cent a share, versus net income of $191 million, or 25 cents a share, in the year-earlier period. Twitter's adjusted earnings fell to 11 cents a share from 37 cents a share and came in above the FactSet consensus, which called for 10 cents a share.
Twitter saw revenue rise to $808 million from $787 million in the year-prior quarter, whereas analysts were modeling $783 million. The company's revenue consisted of $468 million from the U.S. and $339 million from international markets.
"Advertising weakness in Asia began to subside as work and travel restrictions were gradually lifted," according to the shareholder letter. Twitter said it wouldn't be providing a revenue or operating-income outlook for the second quarter due to the pandemic.
Monetizable daily active users (mDAUs) at Twitter rose by 14 million on a sequential basis to hit 166 million on average in the first quarter. Analysts were expecting 12 million new mDAUs.
The company attributed the mDAU gains to "typical seasonal strength, ongoing product improvements, and increased engagement due to the COVID-19 pandemic."
Twitter shares have dropped 7.6% over the past three months as the S&P 500 has declined 10.2%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 30, 2020 10:17 ET (14:17 GMT)
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