Twitter Stock Surge Sparked by Earnings

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July 29 (Bloomberg) -- Twitter’s user base is growing at a steady pace as its second-quarter revenue topped analysts’ estimates, sending its shares soaring more than 20 percent. Estimize CEO Leigh Drogan and Bloomberg's Cory Johnson take a look at the numbers on "Street Smart." (Source: Bloomberg)

Revenue was $312 million.

An increase over the previous year.

They lost 140 $5 million with most of that was about the stock competition i came in connection with the ipo.

-- they lost $145 million.

You have a $15 million adjusted profit.

There are lot of adjustments that companies make and i think these are pretty reasonable showing a 15 million half it -- $15 million profit.

They report the non-gap eps, adjust two cents, so chalk one up to twitter.

The analysts got this one wrong.

The other thing, i will put a lot of stuff in the model and of already started, but the first thing we looked at was how many monthly active users they have.

They reported 271 million up from 255 million.

Users pylon and what this shows is the company is seeing an uptick in the growth rate of users, which i think is the most important dynamic of they're going to grow the his this.

It had been in double digits leading up to the ipo and fell in the single digits.

Moving back up to 6.5% in the last quarter.

That's a little bit at a growth rate.

That's two straight quarters and maybe they are coming out of this dick van dyke think that's important.

We want to go to lead rogan -- dee drogen now.

You heard cory johnson talking about the monthly user growth is sequentially getting much longer.

The market was looking for that metric to change.

It had not been increasing over the last few quarters significantly.

I want to focus on the residue number.

The buy side was looking for a much stronger number than the sell side.

They blew that number out of the water by almost 4%. a great quarter for twitter and add on top of that the mau numbers.

If those numbers significantly get turned around and they continue to grow at 10% year-over-year each quarter, they are able to generate data and the revenue base will never go away.

211 million users on mobile.

Talk about the significance of that.

The app install market, a huge business for twitter and facebook.

Those blue the estimates out of the water mostly on that metric and it really went through to twitter here and i do not see that slowing down at all.

It's only going to get better.

If the analysts were close or not, the business fundamentals here are interesting.

The reason we talk about twitter is not the stock but the effect this business has on a lot of places in the world.

The mobile numbers really tell us and show us that the future of media is happening in twitter and they are monetizing off of back quite well.

The question has always been if twitter could engage their users and they were having a hard time getting them through the sign-up funnel.

It looks like on the product side they've been successful this quarter doing that.

There's been a lot of turmoil on the product side of twitter.

The revenue growth part of the business has been very cordoned off.

If they can get both sides of that company really turned in the right direction, that's a very powerful business.

Looking up third-quarter revenue outlook and the estimate between 330 million dollars and $340 million.

I think the analysts got that wrong.

Expecting analysts were right -- they are saying that the growth is picking up even more than the analysts thought it would and that's a good thing for twitter.

More breaking earnings.

This text has been automatically generated. It may not be 100% accurate.

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