Twitter Inc (NYSE:TWTR) released its second quarter earnings after closing bell tonight, posting adjusted earnings of 13 cents per share on $602 million. Analysts had been expecting adjusted earnings of 10 cents per share on $608 million in revenue. In last year’s second quarter, the micro-blogging platform reported non-GAAP earnings of 7 cents per share on $502 million in revenue.

Twitter TWTR

TWTR’s losses improve

Twitter Inc (NYSE:TWTR) posted a GAAP loss of 15 cents per share, compared to the year-ago quarter’s GAAP loss of 21 cents per share. Adjusted EBITDA grew 45% to $175 million, while the adjusted EBITDA margin was 29%. Ad revenue increased 18% from last year to $535 million, with mobile ad revenue making up 89% of total ad revenue. Data licensing and other revenue rose 35% to $67 million. U.S. revenue grew 12% to $361 million, while international revenue increased 33% to $241 million.

The micro-blogging platform reported a 226% year over year increase in total ad engagements, but cost per engagement plunged 64%. It had 313 million monthly active users at the end of the quarter, coming out just ahead of consensus on the one area that has been its downfall since its initial public offering. Consensus was at 312 million users. In the year-ago quarter, the platform had 310 monthly active users. Twitter had 66 million U.S. users and 247 million international users. Mobile users were 82% of total monthly active users.

Twitter Inc (NYSE:TWTR) management warned that the weakening advertiser demand trends they talked about in the last quarter continued. They said competition for social marketing budgets is increasing, and their prices are at a premium CPE compared to others, which they said has been a headwind.

Twitter provides guidance

For the third quarter, Twitter Inc (NYSE:TWTR) expects revenue to be between $590 million and $610 million and adjusted EBITDA to be between $135 million and $150 million. For the full year, the company expects an adjusted EBITDA margin of 26% to 27%.

Shares of Twitter Inc (NYSE:TWTR) plunged in after-hours trading, falling by as much as 8.89% to $16.81 after tonight’s earnings release.