Twitter stock soars 29% after outstanding quarter

Twitter easily beats expectations with $312M revenue, $0.02 EPS

Financial trends and news by Steven Loeb
July 29, 2014
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Shares of Twitter are exploding in after hours trading, after coming in ahead of revenue expectations in its second quarter earnings report, which was released on Wednesday.

The stock is up over 29%, after going up 1.74%, or 66 cents, in regular trading to finish at $38.59 a share.

The company posted quarterly revenue of $312 million, up 124% year to year, easily beating out analysts expectations of $283 million. Twitter reported non-GAAP EPS of $0.02, which beat expectations of a loss of 1 cents a share.

The company saw its average monthly active users (MAUs) grow 24% year to year, and 6%  quarter to quarter, to reach 271 million. Mobile MAUs increased 29% year to year, and 7% quarter to quarter, to 211 million. Mobile MAUs represented 78% of the company's total MAUs. User growth had been a problem for the company in its last two earnings reports, and this time it was able to beat expectations, as analysts had expected MAUs to grow at 21%.

Timeline views reached 173 billion for the second  quarter of 2014, an increase of 15% year-over-year, the same growth that the company saw last quarter.

Advertising revenue per thousand timeline views reached $1.60 in the second quarter of 2014, an increase of 100% year-over-year.

Once again, almost all of Twitter's revenue came from advertising, which accounted for $277 million, a 129% year to year increase. Data licensing, and other revenue, came to $35 million, an increase of 90% year-over-year. Of Twitter's total revenue, $102million, or 33%, was International, an increase of 168% year-over-year.

GAAP net loss was $145 million, compared to a net loss of $42  million in the same period last year.

Twitter is projecting revenue of between $330 and $340 million, with adjusted EBITDA in the range of $40 million to $45 million, for the next quarter. For the full year 2014, it expects to see revenue between $1,310 million to $1,330 million, with an adjusted EBITDA in the range of $210 million to $230 million.

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Description: What is Twitter? Twitter is an online information network that allows anyone with an account to post 140 character messages, called tweet...