SAN FRANCISCO, California — The social meida network Twitter, announced its second quarter results this week — noting that it has 335 million monthly users to go along with 68 million daily users. Down from the previous quarters as the tech firm look to comply with the GDPR rules that went into effect in May in Europe.
The stock fell more than 15% in premarket trading Friday after the earnings results, before rebounding somewhat.
On a conference call with analysts Friday, CEO Jack Dorsey said Twitter would continue to “invest heavily” in improving the health of the platform, calling it the “right thing to do” for the company and “for society as a whole.”
“We believe that Twitter’s value as a daily service is enhanced when the conversation on the platform is healthier and people feel safe freely expressing themselves,” Dorsey said.
Twitter (TWTR) stock has nearly doubled this year as the company showed signs of a business turnaround.
Highlights from Second Quarter
- Strong revenue growth of 24% year-over-year reflects continued momentum with
advertisers driven by ongoing improvements to the service and improved advertiser
ROI. Twitter is also maintaining profitability while investing in the business, with GAAP net
income of $100 million, GAAP net margin of 14%, adjusted EBITDA of $265 million, and
adjusted EBITDA margin of 37%.
- Twitter launched a scalable new event infrastructure that makes it easier for people to
follow events, topics, and interests on Twitter, with the World Cup serving as its debut.
Overall product improvements, organic growth, and marketing continue to drive healthy
DAU growth of 11% year-over-year.
- Twitter continues to invest in improving the health of the public conversation on Twitter,
making the service better by integrating new behavioral signals to remove spammy and
suspicious accounts and continuing to prioritize the long-term health of the platform
over near-term metrics. Twitter also acquired Smyte, a company that specializes in spam
prevention, safety, and security.