Twitter beats sales estimates

Twitter reported sales that beat Wall Street expectations as the social media company attracted millions of new users with better ways of sorting users’ feeds and more relevant notifications. The shares rose about 4% in early trading in New York.

Second-quarter revenue came in at $841 million, up 18% from the same quarter last year and higher than the $829 million analysts estimated. The company added 5 million daily users in the period, bringing the total to 139 million. That was the biggest year-over-year increase since the summer of 2017.

Net income, excluding certain items, was $37 million, or 5 cents a share. That compares with $58 million, or 8 cents a share, a year earlier, Twitter said.

The most notable blip in the report was guidance: The company expects third-quarter revenue to be between $815 million and $875 million. On average, analysts were looking for sales of $872 million. One reason for the softer forecast: Twitter plans to retire some ad formats in coming quarters.

“We’ve made the decision to shut down some revenue products that were big enough that they might impact near-term revenue, but small enough that they weren’t long-term priorities,” Chief Financial Officer Ned Segal said. “Instead, we are focused on our most important products, delivering higher performing, better formats for our customers.”

Twitter has turned a profit in seven straight quarters and user numbers have steadily risen in the past two years. That follows a decade of losses, executive reshuffles, layoffs and declining usage.

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Twitter beats sales estimates