Analysts are expecting the company to report an EPS of $0.042, which represents an increase of 110% when compared with EPS of $0.02 for the same quarter previous year. Analysts expected earnings of 4 cents per share.
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This surpassed the $481.28 million in revenue analysts surveyed by Thomson Reuters expected the company to report.
Dorsey became interim CEO this month, replacing embattled CEO Dick Costolo. Dorsey is the CEO of Square, a mobile payments startup, and there are indications that Square is preparing to IPO by the end of this year.
The microblog’s sluggish user growth remains a concern, but Twitter stock was up almost 5% in after-hours trading after the company released its results. The bright spot is that its second quarter revenue was $502 million, a 61-percent year-over-year increase from last year.
On Tuesday, Dorsey said the results showed good progress in monetization, “but we are not satisfied with our growth in audience”.
Rich Greenfield, media and technology analyst at BTIG, said Twitter’s focus on user numbers was the opposite of what it ought to do in order to stay healthy. It has also been figuring out ways to make money from the eyeballs that see tweets outside of Twitter through deals with outsiders such as Flipboard and Yahoo Japan.
At the same time, Twitter has offered tools to make it easier for new users to decipher the 140-character public- messaging service, including a revamped private-chat function and an auto-feed for new users.
“While we still believe that there is a meaningful long-term opportunity ahead for TWTR, it is not clear if the current strategy will enable the company to capitalize on this potential”. He and Twitter’s head of global revenue and partnerships Adam Bain are both considered top candidates for the job. While the last quarter’s earnings disappointed many investors, there were some positive signs which indicated that there is still some life in the company. Many of Twitter’s ad products, such as app install ads or cards, are designed for its mobile apps and don’t work on text messages.
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Twitter shares are soaring after the struggling company beat Wall Street estimates. But the white-dude-in-charge switcheroo didn’t do much to supercharge Twitter’s monthly active users. Twitter has also been branching out, most notably buying the live-streaming service Periscope in March.
