Richard Drew/AP
- Shares in Twitter climbed 4% in pre-market trading after the social-media group beat Wall Street’s forecasts for both its top and bottom lines.
- Constant-currency revenue jumped 20% to $841 million, while EPS surged to $1.43 due to a one-off tax benefit.
- Monetizable daily active users rose 14% to 139 million.
- Watch Twitter trade live.
Shares in Twitter climbed 4% in pre-market trading after the social-media company bested Wall Street’s forecasts for both its top and bottom lines. Constant-currency revenue jumped 20% to $841 million, while EPS surged to $1.43 due to a one-off tax benefit. Average "monetizable daily active users" — authenticated users who can be shown adverts — rose 14% to 139 million.
Twitter’s revenue increase was driven by a 23% rise in constant-currency advertising revenue, as ad engagements jumped 20% and cost per engagement remained flat. Data licensing and other revenue rose 4%. Geographically, US revenue leapt 24% to $455 million, while international revenue climbed 16%.
Twitter CEO Jack Dorsey highlighted the company’s efforts to crack down on bad behavior on its platform.
"Health remains our top priority and we are proud of the work we did in Q2," he said in the earnings release. "We also continued our work to proactively identify and address malicious behavior, resulting in an 18% drop in reports of spammy or suspicious behavior across all Tweet detail pages."
Twitter expects revenue between $815 million and $875 million in the third quarter, and operating income between $45 million and $80 million.
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Source: Business Insider – tmohamed@businessinsider.com (Theron Mohamed)