Tim Peterson says, “Even Twitter sounds bummed about its latest quarterly earnings report.

“We’re seeing a continuation of the trends discussed last quarter with less overall advertiser demand than expected,” the company said in its shareholder letter reporting earnings for the second quarter of 2016.

Those trends were not good in the first quarter of 2016 and stayed not good in the second. In both quarters Twitter’s total revenue grew — up 20 percent year over year to $602.0 million in Q2 — but fell short of analysts’ estimates. In both quarters, Twitter’s monthly audience grew, but only by three percent, although the three million people Twitter added in Q2, to total 313 million users, did exceed the two million that analysts had expected. And in both quarters, Twitter admitted that it attracted less demand from advertisers than anticipated.

To be clear, Twitter’s advertising business is still growing. In the second quarter, its ad revenue increased by 18 percent year over year to hit $534.5 million, with mobile accounting for 89 percent of that revenue. But its growth has decelerated pretty steeply, from 129 percent in Q2 2014 to 63 percent in Q2 2015 to 18 percent in Q2 2016”.

Twitter’s ad biz struggles under pressure on video ad pricing

Marketing Land

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