However, the number of monthly active users, a key indicator of growth, came in at 316 million, only slightly up from the 308 million recorded in the previous quarter.
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After the bell, Twitter shares extended losses and were down about 7 percent at around $34, after closing at $36.54 on the New York Stock Exchange.
“This is unacceptable, and we’re not happy about it”, Dorsey said. Mobile advertising revenue accounted for 88 percent of total advertising revenue.
In the time since Twitter went public in November 2013, growth has stagnated while rival social applications, including WhatsApp and Facebook Messenger, drew hundreds of millions more people.
Twitter forecast that revenue in the current quarter would range from $545 million to $560 million, and that it would wind up taking in $2.2 billion to $2.27 billion in revenue for the full year. That compares with a loss of $144.6m, or 24 cents per share, a year earlier.
The earnings per share and revenue of the company were well in the quarter, but the user growth showed poor signs.
Twitter, Inc. has recently released its second quarter 2015 earnings, which reflects the company’s performance ending June 30. Whereas Facebook can tell advertisers that it serves more than 1.4 billion monthly users-and upwards of 900 million daily active users-Twitter has to settle for a userbase of a little more than 300 million. The social media company now has roughly 304 million users. The entire profits increased to 61 percent that is equivalent to $502.4 million.
Twitter reported second-quarter sales that topped analysts’ projections, a bright spot for the growth- challenged company as it seeks a new chief executive officer.
After initially embracing these financials – and only later focusing on such fundamentals as MAU – investors realized that Twitter’s growth can not be sustained without corresponding user gains.
The company also announced departure of its two other executives, Todd Jackson, a product manager, who will move to Dropbox, and Christian Oestlien, vice president of product management, who will join Google Inc unit YouTube.
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Twitter has said it wants a full-time CEO, signaling Dorsey likely will not be picked.
