Twitter Tops Q2 Estimates, But Guidance Sends Shares Downward
Shares of Twitter Inc (NYSE: TWTR) surged around 6 percent in after-hours trading after the company reported stronger-than-expected results for its second quarter. The gains didn't last long, though, as the stock fell more than 10 percent after the company's earnings call.
The San Francisco, California-based company posted a quarterly loss of $136.7 million, or $0.21 per share, versus a year-ago loss of $144.6 million, or $0.24 per share. Excluding certain expenses, the company's earnings rose to $0.07 per share from $0.02 per share.
Its revenue climbed 61 percent to $502.4 million in the second quarter, versus $312.2 million in the year-ago quarter. However, analysts were expecting earnings of $0.04 per share on revenue of $481.3 million.
The average estimate among 303 Estimize users was for earnings of $0.06 per share and revenue of $489.06 million.
Advertising revenue gained 63 percent to $452 million in the second quarter, while data licensing and other revenue rose 44 percent to $50 million. Mobile advertising revenue was 88 percent of total advertising revenue.
US revenue jumped 53 percent year-over-year to $321 million, while international revenue surged 78 percent to $181 million.
Its adjusted EBITDA jumped 122 percent year-over-year to $120 million in the latest quarter.
Average Monthly Active Users increased 15 percent year-over-year to 316 million in the second quarter.
As of June 30, 2015, the company had around $3.6 billion in cash, cash equivalents, and marketable securities, versus $3.6 billion as of March 31, 2015.
"Our Q2 results show good progress in monetization, but we are not satisfied with our growth in audience," said Jack Dorsey, interim CEO of Twitter. "In order to realize Twitter's full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter's value faster, and better communicate that value."
Twitter expects Q3 sales of $545 million to $560 million, versus analysts' estimates of $555.8 million. It projects FY15 sales of $2.2 billion to $2.27 billion, versus analysts' expectations of $2.2 billion.
Twitter shares surged 5.97 percent to $38.72 in the after-hours trading session.
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