Twitter CEO and co-founder Jack Dorsey gestures while interacting with students at the Indian Institute of Technology (IIT) in New Delhi on November 12, 2018.
Prakash Singh | AFP | Getty Images
Twitter on Monday pulled its first quarter guidance due to the growing impact of the COVID-19 pandemic.
“While the near-term financial impact of this pandemic is rapidly evolving and difficult to measure, based on current visibility, the company expects Q1 revenue to be down slightly on a year-over-year basis,” the company said in a press release. “Twitter also expects to incur a GAAP operating loss, as reduced expenses resulting from COVID-19 disruption are unlikely to fully offset the revenue impact of the pandemic in Q1.”
The company had predicted between $825 million and $885 million for its first quarter revenue. Twitter said Monday it will provide an update on its first quarter 2020 earnings call on April 30.
Shares of Twitter fell more than 2% in after hours trading following the announcement.
Twitter’s Chief Financial Officer Ned Segal said the coronavirus has impacted Twitter’s advertising revenue globally “more significantly in the last few weeks” as it spread into a pandemic.
“We have made solid progress on our consumer and revenue product priorities and we remain confident in our opportunity and strategy. We hope everyone stays healthy and safe,” Segal said in a statement.