Twitter's second quarterly report Tuesday was followed by a swift slump in its share price in after hours trading, despite a growth in users and revenue.
What spooked investors, apparently, was a failure once again to demonstrate the kind of explosive growth that Facebook showed at this stage of its career.
The social networking and micro-blogging service reported 255 million monthly users, a gain of 14 million. Last quarter it reported a gain of 9 million.
Revenue of $250 million beat expectations and was up from $242 million last quarter. That was a gain of 119 percent from a year ago.
On the profit side, a loss of $132 million was a big improvement over the $511 million loss reported last quarter. Advertising revenue of $226 million was up from $220 million in the previous quarter, and represented a gain of 125 percent from the same period a year ago.
Twitter's public offering in November saw share prices leap 150 percent, but since then its shares have fallen from $70 in December to $40.74 on Monday and below that in after hours trading Tuesday.
Contact Pete Carey at 408-920-5419 Follow him on Twitter.com/petecarey