Twitter Beats the Street – TWTR

Shares of Twitter (TWTR) which closed up $1.89 Tuesday to $42.62 ahead of the earnings announcement, are down as much as 10 percent in after-hours trading after the social messaging company reported Q1’14 revenue of $250 million and EPS of $0.00 on a non-GAAP basis. The revenues, up sharply from $114.3 million in the year-ago quarter, and EPS beat Wall Street’s expectations, which had forecast a net loss of 3 cents a share on revenue of $241.7 million.

On a non-GAAP basis, Twitter lost $132 million in the first quarter, compared to a net loss of $27 million in the same period last year. That amounts to a non-GAAP net loss of $0.23 per share. The company’s Q1 adjusted earnings before interests, taxes, depreciation and amortization (EBITDA) came in at $37 million, representing an adjusted EBITDA margin of 15%.

“We had a very strong first quarter. Revenue growth accelerated on a year over year basis fueled by increased engagement and user growth,” Dick Costolo, CEO of Twitter said in a press release.

The San Francisco-based Twitter reported 255 million average monthly active users [MAUs] as of March 31, 2014, up 25% year-over-year. Analysts had been expecting MAUs to hit 257 million. That weaker-than-expected user growth has crushed the shares to all time lows in after-hours trading.

TWTR has an average 3-month trading volume of 13 million shares. The ticker, which has nosedived with returns of -35% since Jan. 1, and nearly -30% since the firm’s fourth-quarter earnings release in February, has a 52-wk range of $38.80 – $74.73. The company has a current market cap of $24 billion and a forward P/E ratio of 185.

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