Twitter shares drop 8. 5% after reporting strong revenue

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Twitter shares drop 8. 5% after reporting strong revenue

On Thursday, Twitter Inc. reported increased quarterly revenue on the strength of ad sales, but its user numbers fell short of expectations.

The San Francisco-based company said that its everyday monetizable average usage was growing to 200 million year over year, but analysts expected that number to increase to 199 million in the future.

After hours, Twitter shares fell to close at $65.09 after a 0.9% drop in the regular session.

The microblogging company reported first-quarter net income of $68 million, or 8 cents a share compared to the profit of $8.3 million or 1 cent per share in the same period. Adjusted for stocks-based compensation and other expenses, the earnings were 16 cents a share. Revenue rose to $807.6 million in the year-ago quarter from $1.04 billion.

Analysts surveyed by FactSet projected adjusted earnings of $1.4 billion on revenue that would have been adjusted to the 14 cents a share.

In the second quarter of 2012, Twitter expected to lose $170 million to $120 million in GAAP on revenue of $980 million to $1.08 billion. Analysts predicted adjusted earnings of 16 cents a share and a GAAP loss of 4 cents a share on revenue of $1.06 billion.

Tweets’ shares have risen 20 percent from year to date and are nearly 127% in the last 52 weeks. The S&P 500 Index has so far increased about 12% in the past year and is almost 45% up in the last year.

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