Twitter Q2 Earnings Beat Estimates on $502 Million Revenue

Twitter reported second quarter earnings of 7 cents per share, beating analyst expectations of 4 cents per share. The social media company reported $502 in revenue, an increase of 61 percent year over year, on Tuesday after U.S. stock markets closed.

TWTR opened on Tuesday at $34.70, rising more than 5 percent to $36.54 ahead of the release.

Wall Street analysts had forecasted EPS of 4 cents per share on $481.28 million revenue, according to Yahoo Finance.

Also Read: Twitter's Exiting CEO Dick Costolo Warns Successor: Don't Forget to Woo Wall Street

“Our Q2 results show good progress in monetization, but we are not satisfied with our growth in audience,” said Jack Dorsey, interim CEO of Twitter. “In order to realize Twitter’s full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter’s value faster and better communicate that value.”

Average Monthly Active Users (MAUs) were 316 million for the second quarter, up 15 percent year over year, and compared to 308 million in the previous quarter. The vast majority of MAUs added in the second quarter on a sequential basis came from SMS Fast Followers.

Excluding SMS Fast Followers, MAUs were 304 million for the second quarter, up 12 percent year-over-year, and compared to 302 million in the previous quarter. Mobile MAUs represented approximately 80 percent of total MAUs.

Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased 68 percent, the company said.

For the comparable second quarter in 2014, Twitter had reported EPS of 2 cents per share on $312.17 million in revenue.

Also Read: Twitter Stock Punished 'Over and Above What Was Justifiable' Due to Early Q1 Earnings Leak

Twitter accidentally leaked its own lackluster first quarter 2015 financial results in April, about an hour before the end of the U.S. trading day. Analytics firm Selerity discovered the blunder and tweeted out the results around 3:08 p.m. ET, causing a big, expensive problem for the 140-character platform. Immediately after the leak, Twitter stock started a hard fall, dropping quickly from $51.21 per share to $41.84 and closing at $42.27, down 18 percent overall. In after-hours markets, it dipped an additional 2 percent.

On the company’s second quarter earnings call, Twitter executives stressed their primary goal of making the platform easier to use. Dorsey said that users should find the product as easy as looking out a window to see what is happening.

“Twitter can’t just be the best window to the world, it needs to be the most powerful microphone in the world. You should expect Twitter to be your biggest reach,” the interim CEO said.

The company doesn’t expect “sustained, meaningful growth” of its user base until the service is adopted by the mass market, which could take some time, Twitter finance chief Anthony Noto said in the call.

Regarding the company’s search for a new CEO, Dorsey said the company will provide updates when they have “meaningful” news: “We do not have an update today, but the search committee does feel an urgency with the search.”

Also Read: Twitter Surprises by Not Losing Money in Q1

Dick Costolo stepped down as CEO at the beginning of this month, citing market pressures as a factor.

“You always want to keep focused on the long-term vision, yet when you go public you’re on a 90-day cadence and there’s a very public voting machine of the stock price that accelerates that short-term thinking,” Costolo said. “I have never paid attention to people externally who are saying I should do this or that.”

Co-founder and chairman Dorsey will serve as interim CEO until a permanent leader is named.

Beatrice Verhoeven contributed to this report.

45 Hollywood Social Media Stars: Periscope, Twitter, Snapchat, Facebook, Instagram (Photos)

Ellen DeGeneres on Periscope: Along with offering up some fun behind-the-scenes content, DeGeneres has promoted the Periscope app on her show and encouraged audience participation.
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Dwayne Johnson on Periscope: The Rock was an early user of the app and played up Periscope to promote the “Furious 7” movie premieres.
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Josh Malina on Periscope: The “Scandal” star (also known for his work on “The West Wing” and “Sports Night”) has earned lots of love by engaging in AMAs on Periscope from his home office, plus taking people on a tour of the “Scandal” set, featuring his co-stars.
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Aaron Paul on Periscope: While not the most active user, he delivered one of the most talked about live streams on Periscope.
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Adam Shapiro and Cristela Alonzo on Periscope: Shapiro was an early Periscope adopter, streaming live from the “Scandal” set with his wife Katie Lowes. The charismatic comedian then teamed up with costar Alonzo to connect with fans and build buzz for the season finale of ABC’s “Cristela” using the hashtag #CristelaShappyPeriscopeParty.
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Chris Sacca & Matt Mazzeo, Lowercase Capital on Periscope: The L.A.-based early stage investors have been busy answering tech investing questions all around town, be it the beach or a hackathon at UCLA, in addition to Mazzeo’s morning talk show with coffee klatch partner Abby Chambers.
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Shonda Rhimes on Periscope: The Shondaland creator tweeted, "Just tested out #Periscope for the first time. Live streaming from my office. Back to writing." Find her at ShondaRhimes.
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Arnold Schwarzenegger on Periscope: Arnie was one of the first celebs to join Periscope, and now already has 11,455 followers. He is also big on Snapchat. Find him at Schwarzenegger.
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Tyra Banks on Periscope: The model/actress has been smizing (smiling with your eyes) on Twitter's live-streaming platform.
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Mario Batali on Periscope: Batali was one of the first celebrities granted early access to the platform with a beta version.
Sophia Bush on Periscope: The "One Tree Hill" alum was one of the first celebrities granted early access to the platform with a beta version.
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Mark Cuban, mcuban, on Periscope: Cuban was one of the first celebrities granted early access to the platform with a beta version.
Rihanna on Snapchat: There have been Snapchat accounts masquerading as the singer for years but Rihanna didn’t officially join the platform until April. Since then, RiRi, her entourage and a couple of troll dolls have been featured in the disappearing snaps. The singer is a reluctant subject at times but always entertaining.
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Cody Simpson, CodySimpson, on Snapchat: His Snapchat account recently came under fire for allegedly exposing his girlfriend doing drugs. But more traditional snaps feature the laid-back artist performing, surfing or spending time at the beach with friends.
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Hailee Steinfeld, HaileeSteinfeld, on Snapchat: Steinfeld is best known to movie fans for 2010’s “True Grit,” for which the teen was nominated for an Academy Award for Best Supporting Actress. But the LA-native and star in the upcoming “Pitch Perfect 2” is also an avid Snapchat fan who shares behind the scenes snaps from on set via her own account and from the movie’s marketing account with “Pitch Perfect 2” costar Chrissie Fit.
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Jared Leto on Snapchat: Leto communicates regularly with fans across multiple social platforms, teasing the reveal of his “Suicide Squad” haircut on Twitter and Instagram recently. The actor’s championed Snapchat’s crude drawing tool, using the app to scribble messages and ask for fan feedback. But he’s best known for his psychedelic snaps. Whether at an awards show in Hollywood or on tour in Russia with his band Thirty Seconds to Mars, the Oscar winner’s specialty is decorating his Snapchat selfies with neon war paint. Follow him at jaredleto.
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Ryan Seacrest on Snapchat: Seacrest’s unique access to Hollywood’s hottest events and biggest stars is reflected on Snapchat much like it is online and on-air. Follow him at ryanseacrest.
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Nev Schulman, nevschulman, on Snapchat: The TV host and self-described social media addict spends less time on Snapchat promoting his show than he does offering followers an authentic and unscripted window into his personal life.
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Shay Mitchell on Snapchat: The young actress is in the sweet spot for Snapchat’s demo, attracting young fans to her mix of on-set snaps and attractive selfies. And as the only one of the four PLL female leads active on Snapchat, her behind-the-scenes snaps are especially coveted for their exclusive access. Find her at shaymitch.
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Keegan Allen on Snapchat: Allen, best known as heartthrob Toby Cavanaugh on the show, offers fans an inside look at the making of the series. But Allen’s also used his social clout on Snapchat to promote his own career as a photographer and recently published a book of his work, “life.love.beauty.”
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Kevin Jonas on Snapchat: He’s used Snapchat himself for everything from behind the scenes snapshots while taping “Celebrity Apprentice” and screen time with influencers like Shonduras and Casey Neistat to a dentist visit and baby photos of daughter Alena.
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Diplo on Snapchat: Recently, he used the app to tease a collaboration with Skrillex (aka skrilloo on Snapchat) and Missy Elliott and also shares candid snaps from the road turning a recent trip to South America into a Snapchat travelogue.
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Fifth Harmony on Snapchat: The group formed on the second season of The X Factor has posted performances, fan encounters and rehearsal selfies. They’ve also used the platform to mobilize their Harmonizer fan base around the group’s first studio album, “Reflection,” using the mobile platform to officially announce the album’s track list before its February 3 debut.
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Brett Eldredge/Luke Bryan on Snapchat: The country singers get honorable mention as snapper newbies. They each announced their Snapchat accounts on March 9. Eldredge has used the mobile app to show his off his silly side, engaging in a staring contest with followers and posting snaps of his puppies. Bryan held a Snapchat scavenger hunt, hiding swag in a cooler in the sand at Panama Beach City for fans to find.
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Anna Kendrick on Twitter: When she’s not shooting off self-deprecating zingers or sharing her food porn proclivities, the “Pitch Perfect” star loves a live TV event (looking at you NBC). She’s so fast and funny, you half-expect her to reveal a writing team behind each tweet.
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Zach Braff on Twitter: Things you can’t miss if you follow Braff on Twitter: There isn’t a selfie he doesn’t like, “Scrubs” lives on and the bromance with Donald Faison will last forever. And, like so many stars, he loves a live musical TV event.
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Billy Eichner on Twitter: In one subtweet, Eichner manages to skewer the entire TV musical genre and pin it all on “Sound of Music” sweetheart Carrie Underwood.
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Will Wheaton on Twitter: Comedy Central owes the “Star Trek: The Next Generation” star a paycheck, benefits and a yearly bonus. When Wheaton isn’t guesting on friend Chris Hardwick’s internet-themed improv show “@Midnight,” he’s racking up points and retweets playing the show’s hashtag games like #XmasAMovie or #StonerSports. Will gets our vote as a very punny guy.
William Shatner on Twitter: The onetime Captain Kirk is just as likely to be found live-tweeting CW or SyFy dramas as engaging in Twitter feuds or railing over his pet peeve: Twitter’s verified accounts.
Mia Farrow on Twitter: Farrow is as likely to tweet about the “Sound of Music Live” and “Peter Pan Live” as she is about civil rights, global injustice or tune-in alerts for son Ronan Farrow’s MSNBC show.
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Josh Groban on Twitter: In between concert updates, a lot of dog tweets and flirting with Twitter friends like Anna Kendrick and Michael Buble, Groban spoke for us all when he praised staged-for-TV musicals as a great American holiday tradition.
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Judge Reinhold on Twitter: The “Fast Times at Ridgemont High” star can’t seem to post enough #TBT (Throwback Thursday) snapshots. But he gets a special mention for pulling this 1982 headgear shot out of the archives and comparing himself to Christopher Walken during NBC’s live musical event, “Peter Pan Live.”
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Jerome Jarre on Snapchat: In 2014, he was the fourth most followed individual on Vine, and in 2013, he co-founded GrapeStory, a talent agency for Vine and Snapchat stars.
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Shaun McBride on Snapchat: Known by his username, Shonduras, he became famous for his art work, and he is making thousands of dollars in advertising deals.
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Sanjay Gupta on Periscope: CNN's doctor brought Periscope into Surgery with him.
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Jimmy Fallon on Snapchat: The Tonight Show has started posting their line-up for their upcoming shows to their Snapchat users, with artsy drawings and graphics.
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Tony Reali on Snapchat: He often takes over Good Morning America's Snapchat, and even live snapped/chatted Taylor Swift's concert in 2014.
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Carson Daly on Periscope: Daly will often tweet that he is live streaming using Periscope, whether it's backstage at The Today Show or at The Voice.
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David Beckham on Facebook: The soccer player has 50,654,657 likes on Facebook, posting personal pictures and videos. Also, Beckham just became an instagram user a couple of days ago.
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Vin Diesel on Facebook: Mashable called him the second most popular person on Facebook after President Obama. Currently, he has 91,714,170 likes, and is known to his followers as authentic.
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Shakira on Facebook: The singer has 100,233,197 likes on her Facebook page, making her the most-liked celebrity on this platform.
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Justin Bieber on Twitter: Bieber has the second-highest following on Twitter, after Katy Perry, with 63.3 million followers.
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Kim Kardashian on Instagram: The reality star is evidently one of the most followed Instagram users, with a total of 31.5 million followers. Her wedding photo with Kanye West was also the most liked instagram photo of all time.
Marcus Johns on Periscope: Johns already enjoys celebrity status inside the Twitter ecosystem, thanks to his popular Vine account. Some of his entertaining streams have included aerobic dancing on Hollywood Blvd in fluorescent green shorts.
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Amanda Oleander on Periscope: A Los Angeles-based artist, Oleander quickly became one of Periscope’s most popular personalities.
“I was surprised. I have never been really popular on any other social media app,” Oleander told TheWrap in an interview. She says her streams are focused around motivational talks, exploring Los Angeles and connecting with her audience.
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Twitter, Periscope and Snapchat stars top the list of our favorite social media users

Ellen DeGeneres on Periscope: Along with offering up some fun behind-the-scenes content, DeGeneres has promoted the Periscope app on her show and encouraged audience participation.

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