Twitter cuts outlook after revenue drop

SAN FRANCISCO — Twitter Inc. posted first-quarter revenue that fell short of estimates and cut its sales forecast, signalling a struggle to attract more users and advertisers. The stock fell as much as 26 per cent, a record decline.

Revenue will be $470 million to $485 million US in the second quarter, the San Francisco-based company said in a statement Tuesday. That missed analysts’ average projection for $538.1 million, according to estimates compiled by Bloomberg.

Full-year guidance was cut to $2.17 billion to $2.27 billion, from the previous range of $2.3 billion to $2.35 billion.

Chief executive Dick Costolo has been pushing product and engineering teams to step up the pace of innovation and dispel any doubts about Twitter’s potential as an advertising and social-media destination.