Shares in Twitter plunged after the company posted first quarter revenues that missed Wall Street expectations, and paired that with lower guidance.
Trading in Twitter shares were halted after its earnings leaked prior to the close of the market on Tuesday. Twitter shares closed Tuesday at $42.27 each, down $9.39 (18.18%).
"We asked @nyse to halt trading once we discovered our Q1 earnings numbers had leaked, and published our results as soon as possible," Twitter's investment relations handle Tweeted Tuesday. "We are investigating the source of the leak."
Twitter posted Q1 revenues of $436 million, versus an expected $456 million. Twitter’s also posted a net loss of $162.4 million (25 cents per share).
Twitter said it expected Q2 revenues of $470 million to $485 million, well below expectations of $538 million. For the full year, Twitter now anticipates revenues of $2.17 billion to $2.27 billion, versus original estimates of $2.37 billion.
Twitter on Tuesday also announced it had acquired TellApart, a direct response advertising company.
“By bringing Twitter and TellApart together, we’ll be able to help performance advertisers reach users wherever they are, whether on desktop or mobile,” Kevin Weil, Twitter’s SVP of product, explained in this blog post about the deal. TellApart brings deep expertise in performance advertising, driving cost-effective return on investment through dynamic product ads and email marketing for clients like Neiman Marcus, Pottery Barn, Sur la Table and Wayfair. With continued investment and expansion through our global sales teams, we believe we can extend TellApart’s services internationally and to industries beyond retail.