Twitter Q2 Adj. Earnings Beat View, But Shares Tumble On Flat User Growth

(RTTNews) - Micro-blogging site Twitter Inc.'s (TWTR) shares tumbled more than 9 percent in pre-market activity on Thursday after the company reported monthly active users' figure for the second quarter that was unchanged from previous quarter.

Twitter also reported a loss for the second quarter that widened from last year on lower revenues. However, adjusted earnings per share and revenue beat analysts' expectations.

Twitter's second-quarter net loss widened to $116.49 million or $0.16 per share from net loss of $107.22 million or $0.15 per share in the year-ago period.

Twitter said that beginning the second quarter of 2017, it is changing its method of calculating its non-GAAP provision for income taxes in accordance with the SEC's Non-GAAP Financial Measures Compliance and Disclosure Interpretation.

On an adjusted basis, earnings for the latest quarter were $56.37 million or $0.08 per share, compared to $59.54 million or $0.08 per share last year. On average, 31 analysts polled by Thomson Reuters expected earnings of $0.05 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter declined 5 percent to $573.86 million from $601.96 million last year. Analysts had a consensus revenue estimate of $536.62 million.

Advertising revenue decreased 8 percent from last year to $489 million.

Twitter said its average monthly active users were 328 million in the second quarter, up 5 percent year-over-year and flat with the previous quarter. Twitter's average daily active usage grew 12 percent year-over-year, marking the third consecutive quarter of double-digit growth.

Looking ahead to the third quarter, Twitter projects adjusted EBITDA to be between $130 million and $150 million. The company did not specific revenue guidance for the quarter.

For fiscal 2017, Twitter projects total non-GAAP expenses to be down 3 percent to down 6 percent, compared to the previous year.