In its second quarter earnings report announced today, Twitter beat street estimates to report better than expected EPS and revenue shares. However, crawling user growth rate has put investors in a dilemna, on how to see this quarter for the micro-blogging site.
While Twitter’s shares did see a 4% bump, it quickly came down to close at its previous closing price with a marginal increase in after hours trading. Moreover, analysts never really expected something immaculate of Twitter, and a mere $0.04/share EPS estimate said everything. Twitter reported an EPS figure of $0.07.
Revenues for the company stood at $502 million in its second quarter, a tad higher than the $481.28 Million investors expected from the firm. Twitter ended its quarter with $3.6 billion in cash and equivalents.
However, even though revenues and EPS stood by its side for this quarter, it looks like that plague which struck Twitter’s active users growth rate is here to stay.
The company reported its monthly active user count as 316 Million, up by a mere 15% as compared to previous year’s 2nd quarter, and up by just 8 Million as compared to previous quarter this year. Twitter’s US growth on a Y-o-Y basis reached single digits, to end up at 9%. There was no growth to its userbase in the U.S. when compared to previous quarter.
While twitter’s monetization results and overall earnings have continued to defy investors and posted stronger growth, it has been the user-base which has failed to replicate that growth. And Twitter’s Interim CEO Jack Dorsey acknowledges that himself,
Our Q2 results show good progress in monetization, but we are not satisfied with our growth in audience.
The lone bright spot, could be the fact that twitter is seeing 80% of the overall monthly actives from mobile devices. The official call will be periscoped, and no further numbers were revealed by the company in this pre-call report.
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