Now Twitter has revenue problems, and its stock is tanking

Twitter isn’t done growing just yet, but now it may have other problems.

The company reported its Q1 earnings on Tuesday and said it added five million new users last quarter to bring its total user base to 310 million users, up from 305 million monthly active users in Q4.

But on the business side of things, Twitter reported profits of 15 cents per share on revenue of $595 million. That was better than Wall Street’s expected profits of 10 cents per share, but was short of the Street’s revenue expectation, which was $608 million for the quarter.

Twitter also lowered its Q2 revenue guidance significantly. The company is targeting $590 million to $610 million in revenue this quarter, much lower than the analyst consensus, which was $678 million.

The stock is down nearly 11 percent on the news.

In its shareholder letter, Twitter said the revenue miss was because “brand marketers did not increase spend as quickly as expected in the first quarter.” Hopefully we’ll find out more about what that means on the earnings call, which is set for 5 pm ET. We’ll be liveblogging the call so be sure to tune back in.

The silver lining here for Twitter is a big one: Its user base actually grew last quarter after Twitter reported its first-ever user decline in Q4. The company said back in February that it expected user totals to be near those it reported in Q3 of last year, which was 307 million users, so Tuesday’s bump was certainly expected.

Twitter

BUT! As BTIG analyst Rich Greenfield points out on Twitter, the company appears to have hit a growth wall in the United States. Not good.

https://twitter.com/RichBTIG/status/725060808586219520

We are digging through the shareholder letter Twitter sent out and will update this story with more details if we find anything worth sharing.

This article originally appeared on Recode.net.

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