August 23, 2017

Twitter stalls, fails to add new users this quarter

27 July 2017, 11:31 | Dan Bryan

Twitter beats Wall Street expectations, but user growth has totally stagnated

Twitter shares drop 9 percent as it fails to deliver user growth

Twitter's adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, were $178 million, or 31 percent of the company's total revenue - compared with $175 million or 29 percent of revenue in last year's second quarter. "We increased our focus and discipline to execute at a faster pace than we've done before and ship larger, more fundamental changes that matter", Twitter said in its shareholder letter. Even more, with management previously noting that revenue growth would meaningfully lag user growth, slowing user growth suggests it may be a while before the tech company can return to revenue growth.

In the first quarter, the company's users jumped from 319 million to 328 million, sending signals that Twitter's turnaround efforts had finally started to pay off. Investors are now concerned with user growth, as rival Facebook currently has 2 billion monthly active users. FIL Ltd increased its position in shares of Twitter by 53.1% in the first quarter.

The company's completely stalled user growth during its second quarter sent shares diving more than 10% in pre-market trading on Wednesday. The company reported it is taking daily action on 10 times as many abusive accounts compared with the same time previous year. Handling hate speech and other persistent targeted abuse has been a struggle for Twitter and the service's inability to curb these users reportedly prevented a potential purchase by Disney a year ago.

There was an air of positivity in the buildup to Twitter's second quarter earnings today, with the company's share price popping in the wake of its last earnings results in April.

Revenues fell 4.7% from past year to $574 million, also easily topping analysts' view for $536.63 million.

Health care vote: Pence breaks 50-50 tie
John McCain (R-Ariz.) was greeted with a bipartisan standing ovation when he entered the Senate chamber Tuesday. But details of the actual measure on which Senate Republicans will vote remained unknown Tuesday afternoon.

Twitter reported Q2 revenue of $573.9 million (down 5% annually) and adjusted EPS of $0.08, beating consensus analyst estimates of $537 million and $0.05.

Twitter beats analyst expectations, but turnaround depending on audience growth fails to materialise. It's a slight bump in year-over-year losses, as the site posted a loss of $107 million last year.

However, Twitter's relatively mature business, which accounts for 55% of its ad revenue and 47% of total revenue, saw revenue drop 5% sequentially and 14% annually to $269 million.

Average MAUs were 328 million for Q2, an increase of 5% year-over- year and compared to 328 million in the previous quarter.

Other News

Trending Now

UK Joins France to Ban Sales of Fossil-Fueled Cars by 2040
One big thing in Environment Secretary Michael Gove's favour is that momentum does indeed seem to be with the electric vehicle . Ultimately, the government hopes that by 2050, all cars and vans on Britain's roads will have zero emissions.

Loss to Australia inspires England's World Cup win
The hosts got off to a steady start till Indian spinner Poonam Yadav struck twice and dismantled the top order of English team. In reply, India lost opening batsman Smriti Mandhana for a duck and skipper Mithali Raj was run out with the score on 43.

The Fed, leaving rates unchanged, expects to wind down stimulus 'relatively soon'
New Zealand's two-year swap rate fell 1 basis point to 2.20 percent while the 10-year swaps fell 5 basis points to 3.27 percent. One worry: Inflation has fallen below 2%, the target that the Fed considers healthy, for three consecutive months.

Mosquitoes in Festus, Imperial, Arnold test positive for West Nile
The local health department or city government may be able to add larvicide to the water, which will kill any mosquito eggs. Holt says the county knows they will find West Nile every year, and they best thing they can do is just prepare for it.

McCain Will Return to Congress For Vote on Health Care Reform Bill
But he acknowledged that senators should be able to know beforehand what bill they will be considering. If recent months are any guide, he'll have a new take on it soon.

Atomic Blonde Director Wants John Wick Crossover To Happen
The character is kept so mysterious (she is a spy, after all) that Lorraine could really do anything. On a purely visceral level, " Atomic Blonde " is a masterful piece of cinema.

West Tennessee Company makes glasses to safely view August solar eclipse
The solar eclipse is set to stretch from coast-to-coast on August 21 and will be the first time this has happened since 1918. NASA will fly "eclipse jets" to make totality - when the moon blocks out the sun - last almost three times as long.

Trump tweet: No transgender people will serve in United States military
President Donald Trump said on Wednesday he would not allow transgender individuals to serve in the military in any capacity. Patton reacted with great criticism to Trump's call to ban transgender serving in " any capacity" in the US military.

BBCI: Venezuela crisis: United States sanctions 13 top officials
Critics say the body is a step towards a dictatorship, by bypassing or dissolving the opposition-held National Assembly . Protests against the government have raged across Venezuela since April and earlier this month crossed the 100-day mark.

Real Madrid agree world record fee for Kylian Mbappe
Arsenal, Liverpool and Paris Saint-Germain have also been linked with a move for Mbappe this summer. Now we only have to wait to see if he can live to the hype of such a lofty price tag.