Jay Taylor: Shares of micro-blogging site Twitter Inc (NYSE:TWTR) surged higher yesterday after the company’s blowout earnings report.
Twitter stock closed at $38.59 yesterday before the company declared earnings. Shares jumped almost $12 in after-hours trading following the report, a gain of over 30%. What did the company report that investors seemed to like so much?
Twitter greatly exceeded investor expectations in several key areas.
One of the more exciting metrics was revenue. Twitter was expected to nearly double its revenue from $139 million last quarter to $283 million this quarter. But the social media darling managed to exceed even those lofty expectations.
Twitter reported a 124% surge in revenue compared to last quarter, a total of $312 million generated in the quarter.
With $0.02 in non-GAAP earnings-per-share, the company beat expectations that it would lose $0.01 per share.
Monthly active users – a metric touted by social media companies but slammed by some critics – came in at 271 million versus expectations of around 267 million. This was an increase of 24% compared to last year. Twitter also disclosed that its monthly active users from mobile devices rose even faster, an increase of 29%.
78% of Twitter’s total monthly active users came from mobile devices.
The total number of timeline views for the quarter jumped 15% to 173 billion. Perhaps most importantly, Twitter’s advertising revenue per thousand timeline views rose to $1.60, an increase of 100% compared to last year.
Not only is the number of timeline views growing by 15%, those views are twice as profitable as they were a year ago.
International revenue was another bright spot for Twitter.
Revenue from international sources was 33% of Twitter’s total revenue and rose 168% compared to last year. That’s a big jump, one that suggests Twitter is seeing success with its efforts to grow global reach.