Jack Dorsey’s Twitter creator, co-founder, and chairman and Square’s co-founder and CEO arrives on stage at the 2021 Bitcoin Convention, a cryptocurrency conference held at the Mana Convention Center in Wynwood on June 4, 2021 in Miami. Florida.
Joe Raedle | fake images
Shares of Twitter rose as much as 9% in extended trading on Thursday after the social media company announced second quarter earnings which turned out stronger than analysts had anticipated.
Here’s what Twitter reported versus Wall Street estimates:
- Profits: 20 cents a share, adjusted, versus 7 cents as expected by analysts surveyed by Refinitiv.
- Income: $ 1.19 billion versus $ 1.07 billion as expected by analysts surveyed by Refinitiv.
- Monetizable Daily Active Users (mDAU): 206 million vs. 206.2 million as expected by analysts surveyed by StreetAccount.
Twitter’s revenue grew 74% year-on-year in the quarter, according to a letter to shareholders, with the company citing “a broad increase in demand from advertisers.” In the previous quarter, revenue had increased 28%. Growth accelerated when the company exceeded a quarter when revenue declined nearly 19%, resulting in the strongest growth since 2014.
The number of monetizable daily active users, or Twitter users who see advertising on the site, grew by 11%, Twitter said.
In the quarter, Twitter introduced its first subscription service, which gives users access to an Undo Tweet button and other features. The company also launched its Spaces audio chat feature on mobile devices for all users with at least 600 followers. And it announced a Tip Jar feature that will allow users to send money to other people on the site.
The impact of Apple’s iOS 14.5 release changes associated with the follow-up was less than expected, Twitter said in its letter to shareholders.
Regarding targeting, Twitter said it sees between $ 1.22 billion and $ 1.30 billion in third-quarter revenue. Analysts surveyed by Refinitiv expected $ 1.17 billion in revenue.
For all of 2021, Twitter said it expects total headcount and expenses to increase by at least 30% and that revenue will grow faster than expenses.
Despite the after-hours movement, Twitter shares are up about 29% from the start of 2021, while the S&P 500 Index has risen 16% over the same period.
Executives will discuss the results in a conference call beginning at 6 pm ET.
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