Twitter beats revenue targets with ad improvements, shares jump 5%
Twitter Inc on Thursday reported higher revenue growth than expected by Wall Street, as the social media platform launched an ad targeted ad to help products reach potential customers.
Twitter shares increased 5% to $ 73 in post-metal trading.
Since the beginning of the year, Twitter has been rushing to introduce products in new areas such as audio-only chat rooms and publishing newsletters in an effort to change the years of business standing and achieve its goal of doubling annual revenue by 2023.
Advertising revenue has reached $ 1.05 billion, an increase of 87% from a quarter of last year, hitting Wall Street by an estimated $ 909.9 million.
Twitter has been working to improve the performance of its ads, introducing 2,500 new articles per quarter to help users find the content they are interested in, all of which provide more ad-retention information on Twitter, the company said in a conference call with analysts.
“We’re getting a big signal about what people like most, where they are or what areas they care about,” Twitter finance chief Ned Segal said in a phone call.
Those changes, along with the high demand for advertisers who want to reach consumers as countries open the borders of the epidemic, have helped boost advertising revenue, Twitter said.
Strong results from Twitter and its tech peer Snap Inc (SNAP.N), which reported 116% quarter-on-quarter revenue growth on Thursday, show "that the digital advertising market is burning now, opening up and strengthening advertisers' budget," said Ygal Arounian. , a research analyst at Wedbush Securities.
Twitter reported 206 million daily revenue users (mDAU), which is the time for advertising users, in the second quarter of June 30, similar to the analysts' target of 205.9 million users, according to IBES data from Refinitiv.
U.S. user domain We have dropped by 1 million more than three months from the last quarter due to a simplified media cycle in the United States, says Twitter, where full-fledged users around the world align with Wall Street goals.
Total revenue, including the company's revenue from data licensing, increased 74% annually to $ 1.19 billion, beating analysts estimated at $ 1.07 billion.
FUTURE PLANTING
The San Francisco-based company now expects accounting and total costs and costs to grow by at least 30% for the full year, from the previous target of 25%, as it invests in its engineering and product teams.
Chief Executive Officer Jack Dorsey, a long-time promoter of bitcoin, said that at a time of cost digital money is "a big part" of Twitter's future and could be used for ecommerce transactions on the platform or to provide popular content creators.
Twitter added that the new privacy controls introduced by Apple Inc in April, designed to limit digital advertisers from tracking iPhone users without their consent, had a lower impact than revenue in the second quarter.
The full impact of Apple's changes is yet to be seen, and some concerns remain, Arounian said.
Twitter predicts that the third quarter revenue will be between $ 1.22 billion to $ 1.3 billion, depending on or just before the analysts' consensus figures of $ 1.17 billion.
On a revised basis, Twitter earned 20 cents per share for the second quarter, over an average of 7 cents.
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