Twitter Posts Second-Quarter Loss, Though Sees It as Temporary

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The little blue bird is still singing loud.

Social media giant Twitter (TWTR) - Get Report on Thursday announced a wider-than-expected second-quarter loss as a drop in ad revenue related to the coronavirus pandemic and recent social unrest failed to offset a surge in users and traffic.

At the same time, President Donald Trump's still-favorite soap box said it is already recovering from the drop in ad revenue and expects its third quarter to reflect a surge in daily users and general traffic.

The San Francisco-based company posted a loss of $1.23 billion, or $1.56 a share, vs. income of $1.12 billion, or $1.43 a share, in the same period a year ago. 

The adjusted loss in the quarter was 16 cents a share - analysts polled by FactSet had been expecting a breakeven per-share result for the quarter.

Revenue came in at $683.4 million, down from $841.4 million the same period last year and below analysts’ forecasts of $701.6 million.

At the same time, Twitter said its daily users surged to 186 million in the second quarter, up 34% from a year ago and the second straight quarter of gains on its platform and its largest year-over-year increase since first reporting the metric in 2016. 

The growth was “primarily driven by external factors, such as continued shelter-in-place requirements for many people, and increased global conversation around the Covid-19 pandemic and other current events,” the company said in a statement.

However, advertising revenue took a big hit, not only from the economic fallout from the pandemic but also due brands slowing or pausing spend “in reaction to U.S civil unrest,” the company said.

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