Twitter Q2 Earnings Get Kick From FIFA, TWTR Up 30% - Analyst Blog

Twitter (TWTR) has reported Q2 earnings after the closing bell Tuesday, and its numbers positively surprised estimates across the board. Earnings per share (EPS, accounting for stock-based compensation) was -24 cents on revenues of $312 million were both notably better than Zacks consensus estimates of -28 cents per share and $283 million in sales.

Monthly average user (MAU) growth hit 271 million in the quarter, up 6.3% sequentially and higher than the 267 million expected. Advertising revenue reached $277 million in the quarter a 129% leap from a year ago. 81% of Twitter's ad dollars came from mobile advertising. International revenues grew at a higher than 100% clip for now the second quarter in a row.

The FIFA World Cup was very good for Twitter, having not only occurred during Q2 but also having enjoyed a larger and more involved audience not only around the world but in the U.S. as well. Engaged users are another key metric for Twitter to keep tabs on, and the World Cup served nicely; Twitter included many features to accommodate soccer fans: real-time scoring, push notifications, event and match timelines and a voting ballot feature.

The question is now whether Twitter can continue to build its MAU tallies and keep ad revenue growth going strong. CEO Dick Costolo suggested that once Twitter users are made, they find more and more reasons to use the service. The company also plans to have a "Buy Now" button installed on users' Twitter feeds, but no mention of particular progress was made in the initial earnings statement.

Twitter did, however, increase guidance for Q3; the company expects between $330-340 million in sales for the quarter, up from the Zacks consensus of $329 million. This should help Twitter see some upward estimate revisions in the coming days, at which time the company should climb out of its current Zacks Rank #4 (Sell).

In the after-market, Twitter shares are trading up north of 30%, after a moderately positive regular trading day. Talk about getting a nice kick!
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