Twitter Inc. (NYSE:TWTR) disclosed financial results for its second-quarter of fiscal year 2015 (2QFY15) just after the closing bell today.
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Wall Street initially cheered the earnings release, sending Twitter stock up almost 10% in after hours trading.
U.S. revenue totaled $321 million, an increase of 53% year-over-year. The analysts point out that “the head line reported number may be confusing, as the company may not break out SMS users, leaving the core MAU growth in doubt” and “implore management to break out the 2 pieces, at least for this critical period”.
The first quarter earnings of Twitter Inc.
“We believe Twitter has focused too hard on trying to be perceived by investors and brands as equivalent in scale/reach to Facebook”, he wrote in a note to investors earlier Tuesday, about what he would do as hypothetical CEO of the company.
Revenue: Twitter posted second-quarter earnings of $501 million, beating our consensus estimate or $487 million by a significant margin.
Earnings are expected to come in at $0.02 per share on sales of $479 million.
Twitter reported an average of 316 million monthly active users (MAUs) for the quarter, which was up 16.6 per cent year-on-year and up 2.6 per cent from the previous sequential quarter.
Longtime Twitter investor Chris Sacca urged the microblogging site’s leaders in June to “boldly push the envelope,” by taking huge risks, question key assumptions and launch new features more often.
Twitter seemed to pay no heed to the utter disappointment of the users, and removed the customized wallpapers of all users from their profile pages, timelines and replaced them with the white background.
Still, there has also been a fair amount of speculation about whether Twitter could be a takeover target. Twitter also recently struck a deal with Google which should make expand the reach of tweets beyond the logged-in users of the service. Also last month, it rolled out Project Lightning, a new, curated way for people to see tweets even when they aren’t logged on.
The results “show good progress in monetisation, but we are not satisfied with our growth in audience”, Twitter co-founder and interim chief executive Jack Dorsey said in a release.
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That means that as of writing, he’s the CEO of two major tech companies.
