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Twitter Second-Quarter Results Beat Expectations

Twitter revenue totaled $1.19 billion in the quarter, up 74% from $683.4 million last year. That beat analysts' forecast for $1.07 billion.
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Twitter  (TWTR) - Get Twitter Inc. Report shares rose sharply in after-hours trading Thursday, as the social media titan’s second-quarter results easily beat analyst expectations.

Revenue totaled $1.19 billion in the quarter, up 74% from $683.4 million last year. The FactSet analyst consensus called for $1.07 billion in the latest quarter.

Net income registered $65.65 million, or 8 cents a share, swinging from a loss of $1.38 billion, or $1.75 per share, a year ago.

Adjusted diluted earnings were 35 cents a share, creaming the analyst estimate of 7 cents.

Twitter recently stood at $75.08, up 8% in after-hours trading, after ending the regular session barely changed. The stock surged 48% in the six months through Thursday’s close.

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“Our increased shipping cadence contributed to reaching 206 million average monetizable daily active users in the second quarter, up 11% year over year [from 186 million] and 3% quarter over quarter [from 199 million],” said Chief Executive Jack Dorsey in a statement.

For the third quarter, Twitter expects revenue of $1.22 billion to $1.3 billion and GAAP operating income between a loss of $50 million and break even.

For the full year, it anticipates stock-based compensation expense of about $600 million and capital expenditures between $900 million and $950 million.

Last week, Twitter announced that it’s shutting down its seven-month-old Fleets service, which lets users post tweets that disappear after 24 hours. Fleets disappears Aug. 3.

“In the time since we introduced Fleets, we haven’t seen an increase in the number of new people joining the conversation like we hoped,” said Twitter’s Ilya Brown.