Twitter said earnings for the three months ended in June came in at 5 cents per share, down more than 37% from the same period last year and 14 cents shy of the Street consensus forecast. Group revenues, however, rose 18% to $841 million, well ahead of analysts' estimates of an $828 million tally. Ad revenues rose 21% to 727 million.
Looking into the current quarter, Twitter said it sees revenues in the region of $815 million to $875 million and GAAP operating income of between $45 million and $80 million.
Twitter said it had 139 million daily active users to its microblogging platform in the quarter, up 5 million from the previous three-month period, following a recent re-design and tighter rules on hate speech and inappropriate content.
"Health remains our top priority and we are proud of the work we did in Q2. Our focus was on ensuring that our rules, and how we enforce them, are easy to understand," said CEO Jack Dorsey. "We also continued our work to proactively identify and address malicious behavior, resulting in an 18% drop in reports of spammy or suspicious behavior across all Tweet detail pages, which show the replies to any given Tweet on our service."
"In addition, we continued to leverage machine learning to deliver more relevant content, driving increased usage of Twitter on a daily basis, with mDAU up 14% year-over-year," he added.
Twitter rose 8.9% to $41.52 in trading Friday.