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Twitter: revenue rises, shares fall

Revenues increased bubbling advertising revenues in the second quarter by 61 percent. On the stock market, the stock lay down a roller coaster ride.

Twitter is after the resignation of chief executive Dick Costolo in an uncertain period of transition. Now the company could at least announce a surprisingly high increase in revenues. But the euphoria of the investors did not last long.

Twitter continues stuck in the red, but at least in terms of sales of short message service came last better than expected progress. For the second quarter of Twitter announced on Tuesday after market close a rise in revenues by 61 per cent compared with the previous year to 502 million dollars (455 million euros).

Significantly higher advertising revenues

Excluding the impact of the strong dollar, which reduces the income abroad when converted to US currency, the increase would have been 68 percent. Market expectations were clearly exceeded. The stock rose after trading initially by more than ten per cent, but the gains were crumbling rapidly, and ultimately the price even turned into negative territory.

Advertising revenue increased by 63 percent to 452 million dollars. Of this amount, 88 percent to the promising business with mobile ads on smartphones or tablets.Although market players had expected worse results, it was the weakest ever sales performance in a single quarter since the IPO in November-2013.

User growth increased

In addition, the company continues to lose money – even if the negative could be reduced to the bottom line with the previous year at least of 145 to 137 million dollars. Twitters users also growth falters – in the last quarter, the number of active monthly users rose by only eight to 316 million and stagnated in the US domestic market even.

Interim boss and Twitter co-founder Jack Dorsey, who had taken over the top job from retiring after continuous criticism by shareholders in June Dick Costolo, therefore still looks much room for improvement: “We are pleased with our growth not satisfied,” he commented.

Twitter is in a transitional period until a new CEO is found. Speculation, Dorsey, who had led the company in the past, could assume permanently had not been confirmed. Dorsey passes parallel also the payment service Square, which is according to US media before the IPO.

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