Twitter, Inc. (NYSE: TWTR) took a beating on early Friday markets. Twitter reported in-line earnings for its second quarter, while sales exceeded estimates.
Q2 revenue totaled $711 million, an increase of 24% year-over-year, or an increase of 27% year-over-year when excluding the approximately $14 million of revenue in Q2'17 from our fully-deprecated TellApart product (which did not have any contribution to revenue this quarter).
Advertising revenue totaled $601 million, an increase of 23% year-over-year.
Q2 GAAP net income of $100 million, including $42 million net tax benefit primarily driven by the release of a valuation allowance for Brazil, compared to a net loss of $116 million in the previous year, representing a GAAP net margin of 14% and GAAP diluted EPS of $0.13.
According to CEO Jack Dorsey, "Our second quarter results reflect the work we're doing to ensure more people get value from Twitter every day," said Jack Dorsey, Twitter's CEO. "We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviors that distort and distract from the public conversation."
Twitter expects Q3 adjusted EBITDA of $215 million to $235 million. The number of monthly users declined one million to 335 million for the quarter versus the prior three months.
Adjusted EBITDA margin to be between 33% and 34%. Stock-based compensation expense to be in the range of $85 million to $90 million
Shares plummeted $6.58, or 15.3%, to $36.36
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