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Twitter Quarterly Earnings Leaked, Stock Slumps By 20 Percent

Twitter Quarterly Earnings Leaked, Stock Slumps By 20 Percent
arsp_051 Anthony Ryan/Flickr CC BY-SA 2.0


Twitter Quarterly Earnings Leaked, Stock Slumps By 20 Percent

A leak of Twitter’s first quarterly results, revealed before schedule, was carried out through a high-powered computer.

Selerity, a financial services firm, posted Twitter’s first quarter earnings at 3 p.m. EST, an hour before they were to be released after the close of the market at 4 p.m. EST.

Selerity posted the micro-blogging site’s results on its Twitter account, @selerity. The stock suffered a 6-percent drop before it was halted. Once it resumed working, it had dropped by 20 percent, according to CNN.

However, Selerity defended the accusations of having retrieved the data from Twitter’s TWTR website, saying that it was taken from Twitter’s investor relations site.

Twitter, on the other hand, said that the blame lied with Nasdaq OMX Group, which hosts Twitter’s investor relations website.

Nasdaq did not deny the revelation of the stock. Nasdaq OMX Group spokesman Joe Christinat said that the format of the leaked data was such that only a computer could have detected it.

He further added that about 3:07 p.m. EST, the website “inadvertently made an early version of Twitter’s quarterly earning announcement publicly accessible on their site.”

According to Forbes, Twitter revealed on Tuesday that it slashed the full-year guidance to $2.17 billion to $2.27 billion, down from its earlier range of $2.3 billion to $2.35 billion.

Although Twitter’s revenue escalated from $250 million last year to $436 million this year – a jump of 74 percent – it fell short of analysts’ expectations of $456.2 million. With regards to its earnings per share, it rose to 7 cents from last year’s zero cents, surpassing analysts’ predictions of 4 cents.

Twitter’s international revenue stood at $147 million, a whopping 109% rise from the past year.

The incident of the leaked shares was mentioned by a Twitter spokeswoman at the earnings call. She further said that both Twitter and Nasdaq are investigating the matter.

The rest of the call comprised of Twitter CEO Dick Costolo and CFO Anthony Noto explaining the reasons for the site’s low earnings. It is experiencing problems in a number of areas: keeping people logged in, having new people sign up and persuading advertisers to up the expenditures.

Costolo and Noto said that Twitter was making improvements to the site – with features like “while you were away” and algorithmic timelines – to lower user attrition and enhance retention.

“We’re seeing most exciting results here,” Costolo said.


You might also be interested in: Facebook Shares Drop, But Sees A Rise In Mobile Advertising Revenue


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About Shaurya Arya

Shaurya covers wide range of genres. He is in the know about the day-to-day happenings in the US. He covers politics, environment, lifestyle and sports. Follow him to know the latest development in the US Presidential Election, rescue operations during tornadoes and other calamities or simply whether those viral videos and memes are true or hoax. With a Masters in Journalism, he has a bright future ahead in the field of writing and reporting.

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