Micro-blogging social media company, Twitter saw its stock selloff by as much as 12% in after-hours trading following the release of a mixed quarterly earnings report.

While there was relief that company appears to have found a way to attract more monthly average users (MAUs) to its platform, Twitter disappointed Wall Street by posting revenues that fell short of expectations.

The San Francisco, California-based company posted Q1 earnings of 15 cents a share on revenues of $594.5 million compared with consensus estimates for 10 cents a share on $608 million. Moving on to guidance for the current quarter, Twitter said it expected to generate revenues in a range between $590 million and $610 million, significantly below analysts’ estimates for $678 million.

“Twitter, to its credit, has found a way to reinvigorate interest in its platform and that is to be applauded but, in doing so, it may have focused less than it should have on the bread and butter of revenues,” said Conor Ellison, senior technology analyst at Monex BMO Securities.

Twitter’s CEO and co-founder, Jack Dorsey downplayed concerns about revenues saying that the fall off in Q1 had nothing to do with waning interest from advertisers. He preferred, instead, to focus on the increase in MAUs which gained slightly to 310 million up 3% on the same period last year.

Monex BMO Securities says it is less bearish on Twitter than a year ago because it has faith in Jack Dorsey’s ability to turn the company’s fortunes around and sees a near-term bottom in the stock price.

About Monex BMO Securities
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