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.
Latest Videos From TheStreet and Jim Cramer:
- Jim Cramer: Economy Will Lose Momentum Without More Stimulus
- Jim Cramer: eBay Stock Is Going to Go Higher
- Amazon Prime Day Pushed Back, New Date Not Yet Released
- Tesla Reports Earnings: Here's What to Expect
- What Is Trump’s Economic Plan and How Will it Impact Stocks?
- Coronavirus Update: U.S. Places Nearly $2 Billion Order for Pfizer Vaccine
- Walmart Is Paying $428 Million In Bonuses to Its Frontline Workers