“Despite Trump being perhaps the most high-profile user possible, usage has not dramatically improved over the past couple of years,” Benjamin Schachter, an analyst at Macquarie Securities, wrote in a note to investors before to the earnings announcement. “We simply don’t see the product improvements having a dramatic impact on Twitter’s ability to attract new users.”
The service’s plethora of product updates and push into live video streaming have made Twitter less cumbersome to use, driving advertising revenue and profit in the second quarter.
Revenue increased 24 percent to $710.5 million in the period, topping the analyst average estimate of $697.3 million. Net income was $100.1 million, or 13 cents a share, compared with a loss of $116.5 million, or 16 cents. Adjusted earnings were 17 cents a share. Analysts projected of 16 cents.
Advertising sales have been bolstered by Twitter’s positioning as a destination for a wider range of live video content and as a place to find out “what’s happening now.” The company has tried to improve the site to personalize it more for users, including overhauling the explore section of the mobile app to show curated content for breaking news stories and major events such as the recent World Cup soccer tournament.
International revenue grew 44 percent in the quarter from a year earlier while sales in the U.S., the company’s largest market, increased 10 percent. Japan remains Twitter’s second-largest market, growing 65 percent and generating $122 million.
This article was provided by Bloomberg News.