NEW YORK, Oct. 24, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating potential claims for violations of the federal securities laws on behalf of investors who purchased shares of Twitter, Inc. (TWTR).
On August 6, 2019, Twitter issued a press release through a tweet that stated, "We recently discovered and fixed issues related to your settings choices for the way we deliver personalized ads, and when we share certain data with trusted measurement and advertising partners." (Emphasis added). The tweet linked to a statement on Twitter's help center that further explained, "We fixed these issues on August 5, 2019."
On October 24, 2019, before the market opened, Twitter disclosed its financial results for the quarter ended September 30, 2019 and conducted a conference call with investors. Twitter's revenue of $823.7 million lagged analysts' estimate of $874.0 million. Weaker-than-expected ad sales due to lower volumes in July and August led to this revenue shortfall.
During the conference call, Jack Dorsey, Twitter's Chief Financial Officer, disclosed that "unfortunately, we had some missteps and bugs in our map ads . . . In aggregate, issues relating to our revenue products reduced year-over-year growth by 3 or more points in Q3. We discovered and took steps to remediate bugs that largely affected our legacy map product. These bugs affected our ability to target ads and share data with measurement and partners. We also discovered that certain personalization and data sightings were not operating as expected. These issues were in our control and we will work to do better. . . . Looking ahead, while retaking steps to remediate the product issues we've described, we expect them to continue to weigh on the overall performance of our ads business in the near term. Specifically, we expect a moderated performance in MAP and issues discussed in our personalization and data settings will likely result in 4 or more points of reduced year-over-year growth for total revenue in Q4, from 3 or more points of impact in Q3, reflecting a full quarter impact in Q4 versus only a partial quarter impact in Q3. This is incorporated into our guidance."
On October 24, 2019, Twitter shares declined as much as $7.54 per share or over 19% on heavier than usual trading volume.
If you purchased Twitter shares, and would like to discuss our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has decades of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:
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