Twitter beats earnings and revenue estimates
Twitter (TWTR) reported its fiscal 2Q17 results on Thursday, July 27. The company’s revenues came in 5% lower than the corresponding quarter last year. Revenues came in at $574 million, beating analyst expectations of $537 million. The company’s total ad revenue, which accounts for close to 85% of Twitter’s total revenue, fell 8% YoY.
It also beat earnings expectations. Twitter posted EPS of $0.12 per share compared to analyst estimates of $0.05 per share, which excludes one-time items. Including the one-time factors, the social media giant posted a loss of $116 million in 2Q17 compared to a loss of $107 million in 2Q16. Twitter has now posted net losses every quarter since its debut in November 2013.
Twitter’s monthly active user growth was flat in 2Q17
The number of people using Twitter on a monthly basis was 328 million in 2Q17, which was flat from 1Q17 and was up only 5% from 2Q16. Fiscal 1Q17 saw an addition of 9 million monthly users as there was a rise in activity after President Trump’s election. Meanwhile, as we saw in an earlier part, Facebook (FB) continues to see monthly active user growth and now has 2 billion of them.
Twitter stock plunged 14.1% on Thursday as investors reacted to the flat user data. Wall Street had estimated 332.5 million average monthly active users. Monthly users in the US fell by 2 million during 2Q17 to 68 million. Meanwhile, Twitter’s daily active users rose 12% YoY in 2Q17.