July 28--Twitter blew past Wall Street expectations, reporting second-quarter revenue of $502 million, up 61% compared with a year earlier and well above analyst estimates of $481 million.
For the second quarter, the San Francisco company posted a net loss of $137 million. Adjusted for one-time events, it had a profit of $49 million, or 7 cents a share.
Average monthly active users, a key growth metric, totaled 316 million, an increase of 15% year-over-year and up slightly from 308 million in the first quarter. Mobile monthly active users represented approximately 80% of the total.
"Our Q2 results show good progress in monetization, but we are not satisfied with our growth in audience," interim Chief Executive Jack Dorsey said. "In order to realize Twitter's full potential, we must improve in three key areas: ensure more disciplined execution, simplify our service to deliver Twitter's value faster and better communicate that value."
The microblogging company said advertising revenue totaled $452 million, an increase of 63% year over year. Mobile advertising revenue accounted for 88% of total advertising revenue.
U.S. revenue totaled $321 million, an increase of 53% year-over-year. International revenue totaled $181 million, an increase of 78%.
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Twitter's shares rose more than 5% in after-hours trading shortly after earnings were released. During regular trading, its stock rose $1.84, or 5.3%, to $36.54.
It was a tumultuous quarter for Twitter. The company announced in June that Dick Costolo was stepping down as chief executive, to be replaced on an interim basis by Twitter co-founder Dorsey.
Dorsey is now splitting his time between Twitter and Square, which he also cofounded and serves as CEO.
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