Twitter Tumbles After Reporting Earnings

Twitter's share price fell as much as 18% in pre-market trading after the company reported a quarter-over-quarter decline in monthly active users, reports Business Insider.

The company reported its Q2 financials as follows, beating on revenue and with EBITDA in line with estimates:

• Revenue: $711 million, up 24% year on year
• EBITDA: $265 million, up from $178 million last year
• MAU: 335 million, down from 336 million in Q1, but up from 326 million in Q2 2017.

Twitter blamed the active user decline on new European privacy rules and its decision not to move to paid SMS carrier relationships, and on its efforts to clean up the platform.

Twitter's put its EBITDA guidance for the third quarter between $215 million and $235 million.

Chief executive Jack Dorsey said: "Our second quarter results reflect the work we're doing to ensure more people get value from Twitter every day.

"We want people to feel safe freely expressing themselves and have launched new tools to address problem behaviors that distort and distract from the public conversation."

Dorsey said daily active users had growth 11%, but the company didn't break out figures.

The company saw strong gains in advertising, with revenue up 23% year on year to $601 million.

Twitter saw fastest revenue growth in international markets, which now account for half its revenue. Markets outside the US grew 44% year on year to $344 million. The US grew just 10%, and brought in $367 million.