Twitter didn’t grow its monthly user base at all last quarter, despite beating Wall Street’s expectations for revenue.
The company’s completely stalled user growth during its second quarter sent shares diving more than 9% in pre-market trading on Wednesday.
Investors are looking for signs that Twitter can turn its struggling business around by adding new users and edging towards profitability. Twitter reported its first ever year-over-year decline in revenue for Q1, but still managed to blow past user growth estimates by adding 9 million more monthly actives.
In its letter to shareholders, Twitter said that it was able to boost engagement among daily users during Q2 with more push notifications, email alerts, and timeline improvements. But monthly user growth was offset by “lower seasonal benefits and other factors.”
The company doesn’t expect revenue growth to improve in the second half of 2017, mainly due to “de-emphasized revenue products.”
Here are the key numbers from Twitter’s Q2 earnings:
- EPS (adjusted): $0.12 vs. $0.05 expected.
- Revenue: $574 million vs. $537 million expected.
- Monthly active users: 328 million, flat from the previous quarter and an increase of 5% from the year-ago period.
As reported by Business Insider