Twitter, Inc. (NYSE: TWTR)
Shares of Twitter sank more than 14 percent before the opening bell on Friday, following disappointing number of monthly active users and weaker forecast.
The San Francisco-based company said number of monthly users decreased by one million during the second quarter, and warned the figure will drop further in the current quarter as it escalates its fight against malicious rhetoric, spam, and fake accounts.
The social media network had a total of 335 million monthly users around the world during the quarter, compared to 336 million users in the same period last year.
On a brighter note, the tech giant continued to leap earnings, recording its consecutive third-quarter profit.
TWTR Earnings & Outlook
Twitter posted net income of $100.1 million, which translates to $0.17 per share, compared to net loss of $116 million in the year-ago quarter.
Analysts were expecting the social media network to report earnings of $0.17 per share, according to figures compiled by Thomson Reuters.
Revenue totaled to $711 million, ahead of Thompson Reuters consensus estimate of $696.2 million.
The number of active monthly active users during the quarter was 335 million, down from 338.5 million in the second quarter of the previous year.
Ad revenue increased by 23%, to $601 million in the third quarter, with US ads accounting for more than half total revenue, at $293 million.
International ad revenue was $308 million, up 40%, from the same quarter last year, and the first time it accounted for majority of the total ad revenue.
Asia-Pacific was the fastest-growing region during the quarter, propelled by rapid video growth in Japan as well as high performance of ad products in China.
Twitter CEO Comments
“Our second quarter results reflect the work we’re doing to ensure more people get value from Twitter every day. We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviors that distort and distract from the public conversation. We’re also continuing to make it easier for people to find and follow breaking news and events, and have introduced machine learning algorithms that organize the conversation around events, beginning with the World Cup. These efforts contributed to healthy year-over-year daily active usage growth of 11 percent and demonstrate why we’re investing in the long-term health of Twitter,” said Jack Dorsey, Twitter Chief Executive Officer.
Twitter, Inc. Company Profile
Twitter, Inc. is a global platform for public self-expression and conversation in real time. It provides a network that connects users to people, information, ideas, opinions, and news.
Its products and services include Twitter, Promoted Tweets, Periscope, Promoted Trends, and Promoted Accounts.
Its application provides social networking services and micro-blogging services through mobile devices and the Internet. Users can also some of its products as marketing tool for their businesses.
Twitter competes with Facebook, Inc., Snap, Inc., Alphabet, Inc., Microsoft Corporation, Yahoo, Line Corporation, Kakao, AOL, and DoubleClick Ad Exchange.
The Company was founded on March 21, 2006 by Jack Dorsey, Noah E. Glass, Evan Willams, Jeremy LaTrasse, and Christopher Isaac Stone. Its headquarters are based in San Francisco, California. –Reuters