Shares of Twitter rose 5% to $73 in trading after the bell.
Since the start of the year, Twitter has raced to introduce
products in new areas like audio-only chat rooms and newsletter publishing in
an effort to turn around years of business stagnation and reach its goal of
doubling annual revenue by 2023.
Advertising revenue totaled $1.05 billion, up 87% from the
year-ago quarter, and beat Wall Street estimates of $909.9 million.
Twitter has worked to improve the effectiveness of its ads,
introducing 2,500 new topic categories during the quarter to help users find
content they're interested in, all of which provides more ad targeting data
back to Twitter, the company said on a conference call with analysts.
"We get great signal about what people are most
interested in, where they are or the places they care about," said Twitter
Chief Financial Officer Ned Segal during the call.
Those improvements, along with higher demand from
advertisers seeking to reach consumers as countries reopen from pandemic
restrictions, helped propel ad revenue, Twitter said.
The strong results from both Twitter and its tech peer Snap
Inc, which reported quarterly revenue growth of 116% on Thursday, shows
"that the overall digital ad market is on fire right now, with the
reopening further strengthening advertisers' budgets," said Ygal Arounian,
a research analyst at Wedbush Securities.
Twitter reported 206 million monetizable daily active users
(mDAU), its term for users who are served advertising, for the second quarter
ended June 30, matching analyst targets of 205.9 million users, according to
IBES data from Refinitiv.
Its U.S. user base declined by 1 million over three months
from the previous quarter due to a lighter news cycle in the United States,
Twitter said, with total users worldwide in line with Wall Street targets.
Total revenue, which also includes revenue the company earns
from data licensing, rose 74% year-over-year to $1.19 billion, beating analyst
estimates of $1.07 billion.
The San Francisco-based company now expects headcount and
total costs and expenses to grow at least 30% for the full year, up from its
previous guidance of 25%, as it invests in its engineering and product teams.
Chief Executive Jack Dorsey, a longtime proponent of
bitcoin, said during the earnings call the digital currency "is a big
part" of Twitter's future and could be used for ecommerce transactions on
the platform or to tip popular content creators.
Twitter added that new privacy controls that Apple Inc
implemented in April, which are designed to limit digital advertisers from
tracking iPhone users without their consent, had a lower-than-expected impact
on revenue in the second quarter.
revenue growth than Wall Street had expected, as the social
media platform rolled out ad targeting improvements to help brands reach
potential customers.
Shares of Twitter rose 5% to $73 in trading after the bell.
Since the start of the year, Twitter has raced to introduce
products in new areas like audio-only chat rooms and newsletter publishing in
an effort to turn around years of business stagnation and reach its goal of
doubling annual revenue by 2023.
Advertising revenue totaled $1.05 billion, up 87% from the
year-ago quarter, and beat Wall Street estimates of $909.9 million.
Twitter has worked to improve the effectiveness of its ads,
introducing 2,500 new topic categories during the quarter to help users find
content they're interested in, all of which provides more ad targeting data
back to Twitter, the company said on a conference call with analysts.
"We get great signal about what people are most
interested in, where they are or the places they care about," said Twitter
Chief Financial Officer Ned Segal during the call.
Those improvements, along with higher demand from advertisers
seeking to reach consumers as countries reopen from pandemic restrictions,
helped propel ad revenue, Twitter said.
The strong results from both Twitter and its tech peer Snap
Inc, which reported quarterly revenue growth of 116% on Thursday, shows
"that the overall digital ad market is on fire right now, with the
reopening further strengthening advertisers' budgets," said Ygal Arounian,
a research analyst at Wedbush Securities.
Twitter reported 206 million monetizable daily active users
(mDAU), its term for users who are served advertising, for the second quarter
ended June 30, matching analyst targets of 205.9 million users, according to
IBES data from Refinitiv.
Its U.S. user base declined by 1 million over three months
from the previous quarter due to a lighter news cycle in the United States,
Twitter said, with total users worldwide in line with Wall Street targets.
Total revenue, which also includes revenue the company earns
from data licensing, rose 74% year-over-year to $1.19 billion, beating analyst
estimates of $1.07 billion.
The San Francisco-based company now expects headcount and
total costs and expenses to grow at least 30% for the full year, up from its
previous guidance of 25%, as it invests in its engineering and product teams.
Chief Executive Jack Dorsey, a longtime proponent of
bitcoin, said during the earnings call the digital currency "is a big
part" of Twitter's future and could be used for ecommerce transactions on
the platform or to tip popular content creators.
Twitter added that new privacy controls that Apple Inc
implemented in April, which are designed to limit digital advertisers from
tracking iPhone users without their consent, had a lower-than-expected impact
on revenue in the second quarter.
The full impact of Apple's changes have yet to be seen, and
some concerns still linger, Arounian said.
Twitter forecast third quarter total revenue to be between
$1.22 billion to $1.3 billion, roughly in line with or slightly ahead of
consensus analyst estimates of $1.17 billion.
On an adjusted basis, Twitter earned 20 cents per share
during the second quarter, well above the estimate of 7 cents. The full impact
of Apple's changes have yet to be seen, and some concerns still linger,
Arounian said.
Twitter forecast third quarter total revenue to be between
$1.22 billion to $1.3 billion, roughly in line with or slightly ahead of
consensus analyst estimates of $1.17 billion.
On an adjusted basis, Twitter earned 20 cents per share
during the second quarter, well above the estimate of 7 cents. -Reuters