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Twitter (TWTR) Sees Rollercoaster Ride Following Earnings, User Growth Commentary

July 28, 2015 5:58 PM EDT

REUTERS/Robert Galbraith

After initially zooming higher on strong headline earnings, revenue and user numbers, Twitter (NYSE: TWTR) gave back all its after-hours gains and went decidedly negative following comments from CFO Anthony Noto on the company's conference call.

"We do not expect to see sustained meaningful growth in MAUs until we start to reach the mass market," Noto said. "We expect that will take a considerable amount of time."

For the second quarter, Twitter reported Q2 EPS of $0.07, $0.03 better than the analyst estimate of $0.04. Revenue for the quarter grew 63% to $545 million, easily topping the consensus estimate of $481.28 million.

Co-founder and interim CEO, Jack Dorsey, said while the second quarter results showed progress, "we are not satisfied with our growth in audience." He said the company needs to improve in three key areas: "ensure more disciplined execution, simplify our service to deliver Twitter's value faster, and better communicate that value."

Average Monthly Active Users (MAUs) were 316 million for the second quarter, up 15% year-over-year, and compared to 308 million in the previous quarter.

For the third quarter, Twitter sees revenue between $545 million to $560 million, versus the consensus of $555.8 million.

After trading up as much as 10% immediately following the results, share of Twitter are now trading down 6.3% to $34.24.



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