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Twitter shares soar 27% in pre-market trade on strong user-growth

Published 07/30/2014, 06:59 AM
Updated 07/30/2014, 06:59 AM
Twitter shares surge in pre-market trade after strong second quarter results

Investing.com - Twitter (NYSE:TWTR) saw shares rally sharply in pre-market trade on Wednesday, after the social media network reported better than expected second quarter earnings and user growth figures after markets closed on Tuesday.

Twitter said adjusted earnings per share came in at 2 cents in the second quarter, compared to expectations for a loss of 1 cent per share.

The company’s second quarter revenue totaled $312.16 million, beating estimates for revenue of $282.44 million. Twitter’s advertising revenue jumped 129% year-over-year to $277 million. Mobile ad revenue was 81% of total ad revenue.

The social media network added 16 million monthly users in the second quarter. Analysts on average were expecting 12 million. Twitter said that monthly active users totaled 271 million as of June 30, above expectations for 267 million.

The company reported that timeline views totaled 173 billion, also better than the consensus estimate of 171 billion. Timeline views refer to the total number of timelines requested when registered users visit Twitter, refresh a timeline or view search results.

Twitter 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.”

Twitter said it expects full-year revenue of $1.31 billion to $1.33 billion, better than a previous estimate of $1.27 billion.

Twitter (NYSE:TWTR) shares surged 26.5%, or $10.23 a share, ahead of the opening bell to $48.82.

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Meanwhile, U.S. stock futures pointed to a mildly higher open. The Dow pointed to a gain of 0.15%, the S&P 500 indicated an increase of 0.1%, while the Nasdaq 100 signaled a rise of 0.3%.

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