Twitter's users grew in the first quarter, but you'd never know there was that little piece of good news in the company's earnings report Tuesday. The company's shares sunk more than 10 percent in-after hours trading to less than $16.
The company reported adding monthly active users, the first time it's had such success since the third quarter, according to the Los Angeles Times. Monthly active users totaled 310 million in the most recent quarter, up from 305 million previously.
But Wall Street reacted to the company missing revenue targets and reducing its forecast for future earnings. The company reported revenue of 15 cents per share in the first quarter compared to analyst expectations of 10 cents per share, but revenue still fell short of expectations at $594.5 million. Analysts had expected revenue of $608 million, according to CNBC.
Twitter has projected revenue of up to $610 million in the second quarter, almost $60 million below analyst expectations of $678 million in revenue.
Meanwhile, CEO Jack Dorsey told investors in the company's Q1 earnings call Tuesday that he's laser-focused on recruiting.
"We're continuing to look for new board members and you'll see more additions this year," he said, continuing, "My focus is a lot on recruiting this year and specifically in engineering and product" where he says the company is looking for more leadership.
Facing Q2 revenue projections that fall below Wall Street's expectations, Dorsey said that in filling board seats in the next year, Twitter is looking for candidates with backgrounds in media, international policy and/or in working at public companies. "We're continuing to look for more diversity on our board as well," he added.
Dorsey and executives said "live" uses of Twitter, such as streaming and Moments for news events, would be a continued focus going forward. Asked how he felt about Facebook's recent push into live video content, Dorsey said he thought Twitter was and would remain the leader for live content.
"We've been doing live for 10 years. We believe we have leadership potential in it," he said. "We think the easiest way to get what Twitter is, is to show a live event."