Twitter Inc. (NYSE: TWTR) was one social media earnings report we were highly awaiting, and now the stock went into blast off mode. Twitter was expected to lose a penny in earnings per share. After seeing the so-called whisper number from WhisperNumber.com, we asked if Twitter could manage to have breakeven earnings. Well, Twitter turned in adjusted earnings of $0.02 per share.
Revenue was $312 million, up handily from estimates of $283 million. It is not normal for companies to come in 10% above the consensus estimates, and this may mean that the growth rate may not be slowing as much as expected. Advertising revenue was $277 million, and international revenue was $102 million. Data licensing and “other” revenue was $35 million.
Another key metric is that Twitter’s average monthly active users were 271 million. That is marginally higher than what we were looking for, but it is not as much of a blowout as the revenue and earnings. Advertising revenue per 1,000 timeline views also went to $1.60 — nice considering that there were some 173 billion timeline views.
Twitter did not stop there. Third quarter revenue guidance was lifted to a range of $330 million to $340 million, versus $323.7 million expected from Thomson Reuters.
The 2014 guidance is now being raised to $1.31 billion to $1.33 billion in 2014 revenue. Thomson Reuters has estimates of $1.27 billion. The company also raised its EBITDA views to a range of $210 million to $230 million, but it maintained its target of $330 million to $390 million for 2014 capital expenditures.
ALSO READ: Meet the $100 Facebook Stock Call
Twitter ended its second with cash and equivalents of about $2.1 billion. Trading in the after-hours was more than strong. Twitter closed at $38.59, and the initial trading sent shares up to above $49 shortly before 4:30 p.m. Eastern Time.
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.