Twitter surpasses revenue target with improved advertising, share up 7% Reuters

© Reuters. File Photo: The Twitter app can be seen on the smartphone in this figure taken on July 13, 2021. REUTERS / Dado Ruvic / Illustration / File Photo

Sheila Dan

(Reuters)-Twitter Inc said Thursday on Wall Street as social media platforms rolled out ad targeting improvements and Apple’s changes to keep iPhone user data private had less impact on ad revenue than expected. Reported higher earnings growth than expected.

Twitter’s share jumped 7% to $ 75 in a post-bell transaction.

Starting earlier this year, Twitter will turn around long-standing business stagnation and reach its goal of doubling annual revenue by 2023 in new areas such as voice-only chat rooms and newsletter publishing. We have been competing to introduce our products.

Advertising revenue totaled $ 1.05 billion, up 87% year-over-year, above Wall Street’s estimated $ 99.9 million.

Twitter, like Facebook (NASDAQ :), which holds a huge amount of data about its users, has been working to improve the effectiveness of ads that lag behind its larger rivals.

These improvements helped drive advertising revenue, along with higher demand from advertisers trying to reach consumers as the country resumed from pandemic restrictions, Twitter said.

“By the second half of 2021, we’re shipping more, learning faster, and hiring talented people,” Twitter CEO Jack Dorsey said in a statement Thursday.

According to Refinitiv’s IBES data, Twitter reported 206 million monetizable daily active users (mDAU) in the second quarter, which ended June 30. This is in line with the analyst’s goal of 205.9 million users.

During the quarter, social media companies introduced over 2,500 new topic categories to help users follow content based on their interests. He said he believes the company can retain more users by enabling a more personalized Twitter timeline.

The San Francisco-based company invests in engineering and product teams, so it expects personnel, total costs and expenses to increase by at least 30% for the full year, up from the previous guidance of 25%.

According to Twitter, the lightening news cycle in the United States has reduced the U.S. user base by one million in three months from the previous quarter, and the total number of users worldwide was in line with Wall Street’s goals.

The company’s total revenue, including revenue from data licenses, increased 74% year-on-year to $ 1.19 billion, ahead of analysts’ estimated $ 1.07 billion.

Twitter forecasts total revenue for the third quarter to be between $ 1.22 billion and $ 1.3 billion. This is in line with or slightly above the consensus analyst’s estimate of $ 1.17 billion.

On an adjusted basis, Twitter earns 20 cents per share, well above the estimated 7 cents.

The company said it was too early to determine the long-term impact of the new privacy management implemented by Apple Inc (NASDAQ :) in April. It’s designed to limit digital advertisers from tracking iPhone users without their consent, but it was lower than expected during the second quarter, when it added a revenue impact.

Also on Thursday Snap Inc (NYSE :) reported a 116% increase in quarterly revenue as advertisers flocked to the messaging app Snapchat to reach younger consumers.

Twitter surpasses revenue target with improved advertising, share up 7% Reuters

Source link Twitter surpasses revenue target with improved advertising, share up 7% Reuters

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