Twitter Q2 Profit Beats Street View As Global Users Gain
Shares of Twitter Inc. (TWTR) are gaining 5% in extended session on Thursday after the social media giant’s second-quarter profit trumped Wall Street estimates, as revenues surged 74% driven by surge in advertising revenues and increase in users.
San Francisco, California-based Twitter reported second-quarter profit of $65.6 million or $0.08 per share, compared to a loss of $1.38 billion or $1.75 per share last year.
Adjusted earnings for the quarter were $0.20 per share, compared to a loss of $1.58 per share last year. On average, 26 analysts polled by Thomson Reuters estimated earnings of $0.07 per share.
Second-quarter revenues surged 74% to $1.19 billion from 683.4 million last year. Analysts had a consensus revenue estimate of $1.06 billion for the quarter.
Advertising revenues grew 87% to $1.05 billion, as total ad engagements increased 32% year over year and cost per engagement increased 42% year over year.
Average monetizable daily active users (mDAU) were 206 million for second quarter, compared to 186 million in the same period last year and compared to 199 million in the previous quarter.
Average US mDAU were 37 million for the quarter, up from last year’s 36 million, but slipped from 38 million in the previous quarter. Average international mDAU were 169 million for the quarter, compared to 150 million in the same period last year and 162 million in the previous quarter.
Commenting on the results, CEO Jack Dorsey said, “As we enter the second half of 2021, we are shipping more, learning faster, and hiring remarkable talent. For example, our increased shipping cadence contributed to reaching 206 million average monetizable DAU (mDAU) in Q2, up 11% year over year and 3% quarter over quarter. There’s a tremendous opportunity to get the whole world to use Twitter.”
Looking forward to the third quarter, Twitter expects revenues to be between $1.22 billion and $1.30 billion. Analysts currently estimate revenues of $1.17 billion.
TWTR closed Thursday’s trading at $69.57, up $0.03 or 0.04%, on the Nasdaq. The stock further gained $3.42 or 4.92% in the after-hours trade.
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