Twitter shares are down more than 8% in postmarket trading after it reported mixed Q2 results that notably fell short of analysts’ revenue expectations. The social media company had a net loss of $107.2 million, a 21.6% improvement from the period last year, on revenues of nearly $602.0 million, up 19.8%. The Street was looking for revenues of $606.8 million.
Adjusted earnings at 13 cents a share topped expectations of 9 cents.
But Twitter also says that it sees “less overall advertiser demand than expected.” It forecasts Q3 revenues of as much as $610 million, with adjusted EBITDA of as much as $150 million.
Analysts had been looking for revenues of $682 million in Q3 with EBITDA hitting $169 million.
“We’ve made a lot of progress on our priorities this quarter,” CEO Jack Dorsey said. “We are confident in our product roadmap, and we are seeing the direct benefit of our recent product changes in increased engagement and usage. We remain focused on improving our service to make it fast, simple and easy to use, like the ability to watch live-streaming video events unfold and the commentary around them.”
The average number of monthly users increased 3% vs. last year to 313 million. The number in the U.S. was up 1% to 66 million.
Twitter shares have lost nearly 48% of their value during the past 12 months as investors feared its symbols and protocols would make it unattractive to non-technophiles.