Twitter Stock Jumps 30 Percent on Solid Second Quarter Earnings
UPDATED: The San Francisco social network reported that revenue grew 124 percent to $312 million during the second quarter.
Twitter stock jumped more than 30 percent Tuesday during after-hours trading after the social network reported robust second quarter earnings that beat Wall Street estimates.
The San Francisco tech company revealed in its third earnings report since going public last year that revenue climbed 124 percent to $312 million for the quarter. The company also reported adjusted earnings of 2 cents per share. Analysts had expected the quarterly revenue of $283 million and a net loss of 1 cent per share.
Twitter also reported strong user growth for the quarter. Average monthly active users were 271 million as of June 30, up 24 percent over the same period last year. Mobile MAUs reached 211 million, an increase of 29 percent.
"Our strong financial and operating results for the second quarter show the continued momentum of our business," said CEO Dick Costolo. "We remain focused on driving increased user growth and engagement, and by developing new product experiences, like the one we built around the World Cup, we believe we can extend Twitter's appeal to an even broader audience."
Wall Street responded favorably to the news, sending Twitter's stock up more than 20 percent immediately after the earnings report. The stock continued to climb, rising more than 30 percent, or about $11 during after-hours, to more than $50 during after-hours trading on the New York Stock Exchange.
User growth is an area where the company has struggled in the past and the increase signals that the company is finding new ways to appeal to a larger audience. Costolo noted during the company's call with analysts that user growth was driven by new products.
The World Cup, meanwhile, helped bolster engagement with existing users, Costolo said. The service created a number of features during the tournament including a portal for news, real-time scoring and Tweets.
Costolo also noted that Twitter's total audience is probably two- or three-times larger than the reported number of MAUs because of the number of people who visit Twitter without signing in or view Tweets outside of Twitter.