Twitter (TWTR) Tops Q2 EPS by 3c

(Updated - July 28, 2015 4:06 PM EDT)

Twitter (NYSE: TWTR) reported Q2 EPS of $0.07, $0.03 better than the analyst estimate of $0.04. Revenue for the quarter came in at $545 million versus the consensus estimate of $481.28 million.

Monthly Active Users - 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. The vast majority of MAUs added in the quarter on a sequential basis came from SMS Fast Followers. Excluding SMS Fast Followers, MAUs were 304 million for the second quarter, up 12% year-over-year, and compared to 302 million in the previous quarter. Mobile MAUs represented approximately 80% of total MAUs.

“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.”

Revenue highlights:

• Advertising revenue totaled $452 million, an increase of 63% year-over-year. Excluding the impact of
• year-over-year changes in foreign exchange rates, advertising revenue would have increased 71%.
• Mobile advertising revenue was 88% of total advertising revenue.
• Data licensing and other revenue totaled $50 million, an increase of 44% year-over-year.
• US revenue totaled $321 million, an increase of 53% year-over-year.
• International revenue totaled $181 million, an increase of 78% year-over-year.

Outlook
Twitter's outlook for the third quarter of 2015 is as follows:

• Revenue is projected to be in the range of $545 million to $560 million. (The Street sees $555.8 million.)
• Adjusted EBITDA is projected to be in the range of $110 million to $115 million.
• Stock-based compensation expense is projected to be in the range of $190 million to $200 million,
• excluding the impact of equity awards that may be granted in connection with potential future
• acquisitions.

Twitter's outlook for the full year of 2015 is as follows:

• Revenue is projected to be in the range of $2.20 billion to $2.27 billion. (The Street sees $2.20 billion.)
• Adjusted EBITDA is projected to be in the range of $520 million to $540 million.
• Capital expenditures are projected to be in the range of $450 million to $550 million.
• Stock-based compensation expense is projected to be in the range of $750 million to $790 million,
• excluding the impact of equity awards that may be granted in connection with potential future
• acquisitions.

For earnings history and earnings-related data on Twitter (TWTR) click here.

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