Tags: Twitter | earnings | sales | shares

Twitter Second-Quarter Sales Top Analyst Estimates; Shares Jump

Tuesday, 28 Jul 2015 04:38 PM

Twitter Inc. reported second-quarter sales that topped analysts’ projections, a bright spot for the growth-challenged company as it seeks a new chief executive officer.

In the second quarter, revenue rose 61 percent to $502.4 million, the social-media company said Tuesday in a statement. That exceeded analysts’ average projection for $481.9 million, according to data compiled by Bloomberg. Twitter also boosted its forecast for 2015 sales.

As Twitter races to update its offerings to attract a broader range of users, its sales team has been making deals to help advertisers use the site more effectively and get more out of their marketing spending. The moves are giving Twitter some time to solve its underlying problem: It’s much smaller than the competition. The company today reported 316 million monthly users, while Facebook Inc.’s social network has 1.4 billion.

“We should start to see the benefit of some of the deals they’ve done, like the search partnership with Google and the DoubleClick partnership,” said James Cakmak, an analyst at Monness Crespi Hardt & Co., who rates the shares the equivalent of a hold.

Former Twitter CEO Dick Costolo was replaced this month on an interim basis by co-founder Jack Dorsey, who also runs Square Inc., a mobile-payments company. Twitter is conducting a search for a permanent CEO, and has ruled out Dorsey as long as he stays full time at Square.

The company’s net loss narrowed to $136.7 million, or 21 cents a share. Profit excluding certain items was 7 cents, compared with the 4 cents analysts estimated.

Shares of San Francisco-based Twitter gained as much as 12 percent to $41, after rising 5.3 percent to $36.54 in New York. The stock has gained 1.9 percent this year.

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Twitter Inc. reported second-quarter sales that topped analysts' projections, a bright spot for the growth-challenged company as it seeks a new chief executive officer.
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2015-38-28
Tuesday, 28 Jul 2015 04:38 PM
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