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Jack Dorsey creator, co-founder and chairman of Twitter and co-founder and CEO of Square arrives on stage at the 2021 Bitcoin Convention, a cryptocurrency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Shares of Twitter rose as much as 9% in extended trading Thursday after the social media company reported better second-quarter results than analysts had expected.
Here’s what Twitter reported against Wall Street estimates:
- Earnings: 20 cents per share, adjusted, compared to 7 cents as expected by analysts polled by Refinitiv.
- Income: $ 1.19 billion versus $ 1.07 billion as predicted by analysts polled by Refinitiv.
- Monetizable Daily Active Users (mDAU): 206 million against 206.2 million as expected by analysts polled by StreetAccount.
Twitter’s revenue grew 74% year-over-year in the quarter, according to a letter to shareholders, the company citing “a large increase in demand from advertisers.” In the previous quarter, sales increased by 28%. Growth accelerated as the company wrapped up a quarter when revenues fell nearly 19%, resulting in the strongest growth since 2014.
The number of monetizable daily active users, or Twitter users who see ads on the site, increased 11%, Twitter said.
During the quarter, Twitter launched its first subscription service, which gives users access to a Cancel Tweet button and other features. The company also launched its Spaces audio chat feature on mobile devices for all users with 600 or more subscribers. And he announced a Tip Jar feature that will allow users to send money to others on the site.
The impact of changes in Apple’s iOS 14.5 associated with tracking has been weaker than expected, Twitter said in its letter to shareholders.
As for the forecast, Twitter said it is forecasting between $ 1.22 billion and $ 1.30 billion in revenue in the third quarter. Analysts polled by Refinitiv expected revenue of $ 1.17 billion.
For the full year 2021, Twitter said it expects headcount and total spending to grow by at least 30%, and income will grow faster than spending.
Despite the after-hours move, Twitter shares have risen about 29% since the start of 2021, while the S&P 500 index has risen 16% during the same time frame.
Executives will discuss the results on a conference call starting at 6 p.m. ET.
This is last minute news. Please check for updates.
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