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Twitter beat on earnings, but missed revenue guidance

Given that the stock was down almost 50% over the past year heading into the report, investors would have likely overlooked the revenue miss and paltry year-over-year U.S. MAU growth of 1% (+4% growth for global MAUs) for the quarter had guidance been better.

Guidance came in sharply below expectations, with the midpoint of management’s revenue outlook coming in at $600 million – sharply below the consensus of $678 million for next quarter.

Although the results weren’t promising, investors are clinging to Twitter’s tweaks and improvements, along with streaming deals involving the NFL, NHL, NBA and MLB, along with other networks.

On the plus side, the company did grow revenues 20% YOY and saw ad engagements were up.

As we said last week, the stock has very much become a “prove me” name and this quarter didn’t do much proving. The hope now will be that the Olympics and future streaming deals (most of which will kick in towards late-summer or fall) will be enough to re-accelerate user growth and push revenues higher.

The other hope is that Twitter gets acquired.