Market Overview

Twitter Falls As User Growth Remains Stagnant

Twitter Falls As User Growth Remains Stagnant

Twitter Inc (NYSE: TWTR) reported Thursday morning its second-quarter results, which sent the stock tumbling lower by 8 percent. The company earned $0.08 per share in the quarter on revenue of $573.9 million; Wall Street analysts expected the company to earn $0.05 per share on revenue of $536.6 million.

While Twitter did deliver a top and-bottom line beat, the company ended the quarter with 328 million monthly active users. Not only was this metric short of the 329 million expected, but it's unchanged from the prior quarter.

Here are some other highlights from management's letter to shareholders.

  • Advertising revenue from the social media platform fell 8 percent year-over-year to $489 million.
  • Data licensing and other revenue rose 26 percent to $85 million.
  • U.S. revenue fell 7 percent to $335 million.
  • International revenue fell 1 percent to $239 million.
  • Total ad engagements rose 95 percent.
  • Cost per engagement (CPE) fell 53 percent year-over-year.
  • Monthly active users grew 5 percent year-over-year.
  • Daily Active users grew 12 percent.
  • Net loss for the quarter rose 9 percent to $116 million.
  • Net loss does include a $55 million cost-method investment impairment charge.
  • Twitter streamed more than 1,200 hours of live premium video.
  • Management highlighted an improvement in the year-over-year growth rate for total revenue relative to Q1.
  • Twitter's GAAP net loss for the quarter was $116 million, marking an increase of 9 percent from the same quarter a year ago.

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