Stronger-than-expected financial results pushed Twitter Inc’s stock sharply higher on Tuesday after the short messaging service said its revenue more than doubled in the second quarter.
Twitter also grew its user base more than expected, alleviating concerns, at least for now, that it does not hold appeal for a broad swath of people. Its larger rival, Facebook, also posted strong results last week and its stock is trading near a record high.
San Francisco-based Twitter’s stock jumped 30 percent to US$50.01 in extended trading on Tuesday.
The company posted a net loss of US$144.6 million, or US$0.24 per share, in the second quarter.
That compares with a loss of US$42.2 million, or US$0.32 per share, a year earlier when Twitter was still a private company.
Adjusted earnings were US$0.02 per share in the latest quarter, beating analysts’ expectations of a loss of US$0.01, according to FactSet. These numbers exclude stock compensation expenses.
Revenue was US$312.2 million, up from US$139.3 million thanks to help from new advertising tools Twitter launched in recent months, as well as international expansion. Analysts polled by FactSet were expecting lower revenue of US$283.3 million.
Mobile advertising revenue was US$224 million, or 81 percent of the quarter’s total ad revenue. In the first quarter, mobile ad revenue amounted to about 80 percent of total ad revenue.
“Our strong financial and operating results for the second quarter show the continued momentum of our business,” CEO Dick Costolo said in a statement. “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.”
The service had 271 million average monthly users as of the end of last month, up 24 percent from a year earlier and up 6 percent from the end of March.
Analysts were expecting 266 million users. Facebook, in comparison, has 1.32 billion users.
For the current quarter, Twitter is expecting revenue of US$330 million to US$340 million, above analysts’ expectations of US$323.7 million.
The company raised its revenue outlook for the year to between US$1.31 billion to US$1.33 billion. Its earlier guidance was for revenue of US$1.2 billion to US$1.25 billion. Analysts are forecasting US$1.27 billion.
Twitter went public in November last year at a price of US$26 per share. The stock peaked the following month at US$74.73 and then declined sharply.
On Tuesday, it closed at US$38.59 before the after-hours surge.
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