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Twitter Revenue Exceeds Expectations, But Experiences Little Growth In Active Users

Twitter Revenue Exceeds Expectations, But Experiences Little Growth In Active Users
Twitter Jonathan Rolande / House Buy FastCC BY 2.0


Twitter Revenue Exceeds Expectations, But Experiences Little Growth In Active Users

Twitter, Inc. has recently released its second quarter 2015 earnings, which reflects the company’s performance ending June 30. It revealed that the social media company managed to exceed its revenue target, earning a second quarter revenue of $502 million, way above the forecasted revenue of $470 million to $480 million. This also reflects a significant increase when compared to the company’s second quarter revenue of $312 during 2014. Meanwhile, Twitter’s stock is currently up by 5.3% to $36.54.

Twitter Board of Directors Chairman and Interim Chief Executive Officer Jack Dorsey is feeling positive about the latest results. He said, “Our Q2 results show good progress in monetization, but we are not satisfied with our growth in audience.” Moreover, he identified Twitter’s main strategy for progress to continue. He explained, “In order to realize Twitter’s full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter’s value faster, and better communicate that value.”

Twitter’s monthly active users also grew to 316 million, which reflects a slight increase from the year’s first quarter monthly active users of 308. Twitter also said that majority of this actually came from SMS Fast Followers or Twitter users who have signed and are accessing Twitter via SMS only. However, the number of active users in the United States stayed at 66 million for both quarters. Moreover, Twitter only experienced a very marginal increase in monthly active users in the U.S. when compared to the second quarter of 2014, which yielded 60 million users.

Elsewhere in the world, Twitter’s international monthly active users grew to 250 million from 242 million in the previous quarter. This is also a significant increase from the 2014 second quarter international monthly active users of 214 million.

Meanwhile, there is also a slight improvement on Twitter’s GAAP net loss, which is now $137 million, compared to the $145 million GAAP net loss during the second quarter of 2014.

During the second quarter as well, Twitter had acquired marketing technology company TellApart while it also pursued a partnership with Google’s DoubleClick platform. Meanwhile, the company also launched a new autoplay feature that Twitter members can use on native videos, Vines, GIFs and Periscope.

For the third quarter of the year, Twitter is looking at earning a revenue between $545 million and $560 million. Meanwhile, the company also believes that their overall 2015 revenue will be somewhere between $2.20 billion and $2.27 billion.

About Jennifer Ong

Jennifer Ong has been covering and writing stories since 1998. Over the years, she has worked on stories on business, health, lifestyle, entertainment and travel. She has also previously written shows for television. When she's not on the job, she enjoys wine and Formula 1.

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