Wednesday, 29 July 2015

Twitter generated $452m in ad revenue in Q2 2015

"Twitter added eight million new users in total if you include what Twitter calls SMS Fast Followers, people who receive tweets as text messages instead of through an actual account. The company’s never highlighted the SMS Fast Followers total before, but said on its last earnings call that it would start to this quarter. If you include those people as part of the user base, which Twitter is obviously doing now, users jumped from 308 million last quarter to 316 million. If you exclude Fast Followers, Twitter’s user base is 304 million people.
The obvious explanation for the change is that it makes Twitter’s user base look significantly bigger. Twitter has struggled to meet Wall Street’s growth expectations since going public back in late 2013; Analysts set low expectations for the company this quarter, too. The addition of two million new core users is the smallest quarter-over-quarter jump it has ever reported.
Twitter posted profits of seven cents per share on $502 million in revenue for the quarter, up more than 60 percent over this same time last year. Analysts were looking for profits of four cents per share on roughly $481 million in revenue. Most of that revenue comes from advertising. Twitter reported $452 million in ad revenue on the quarter, a 63 percent jump from last year."

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