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Twitter reports mixed Q2: $602M sales, EPS of $0.13, MAUs a sluggish 313M

ICE Graveyard 26/07/2016 Ingrid Lunden

Twitter today reported Q2 earnings, and the woe that is its poor user growth continues, with its 313 million monthly active users up just 3% on a year ago. The company reported revenues of $602 million with adjusted earnings per share of $0.13. While revenues are up 20% on a year ago, the numbers were a miss on sales and a beat on EPS: analysts were expecting $606.8 million in revenue and adjusted earnings of $0.10 per share.

Last month, the company reported revenues of $595 million with 310 million MAUs and weak guidance.

Advertising revenue totaled $535 million, an increase of 18% year-over-year, Twitter said. Mobile advertising revenue continues to lead the way, accounting for 89% of total advertising revenue.

Twitter has consistently disappointed the market with its poor user growth, which all but stalled earlier this year. Yesterday, the company seemed to be trying to head off today’s news at the pass by announcing yet another marketing effort to better explain the company and what it’s purpose is for the world at large. It’s tweaks with its basic format, where it may mix up the timeline to surface more “sticky” Tweets, and allow for more than its standard 140-character limit, are also examples of how the company has tried to address some of the complaints.

The company has also been making a big effort to sign a lot of content deals, specifically around sports, to stream events live on its own platform. It’s still very early days, and one initial effort covering Wimbledon was nearly impossible to find on the site, but it’s an interesting turn for a company that had up until now positioned itself as a place to share links to things, not consume things directly. Whether it works to keep people around for longer is the big question.

But the challenges remain. One of the biggies that we’ll be listening for on the call is whether the issue of harassment comes up at all. The company is still working through ways of dealing with so-called trolls who bully others on the platform, trying to walk the fine line between the free speech that Twitter in theory celebrates, and shutting down bad actors.

More to come.

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