Twitter (TWTR) Crushed Expectations For Q2

Twitter Inc (NYSE:TWTR) was launched in 2006 as a short messaging service. The free-to-use service became increasingly popular in a short span of time. Quarterly tweets on the Twitter app increased from 400,000 in 2007 to more than 100 million in 2008. By 2012, Twitter users were posting nearly 350 million tweets a day. Today, it is one of the most widely used social networks in the world.

The California-based company recently announced strong financial results for the second quarter. Twitter reported earnings of 8 cents per share for the three months ended June 30, versus a loss of $1.75 per share in the comparable period of 2020. The microblogging site earned 20 cents per share on an adjusted basis, crushing analysts’ average estimate of 7 cents per share.

Revenue for the quarter climbed 87 percent on a year-over-year basis to $1.19 billion, exceeding the consensus forecast of $926 million. Advertising revenue skyrocketed 87 percent to 1.05 billion.

Speaking 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.”

Twitter also updated its revenue outlook for the third quarter. It expects revenue in the range of $1.22 billion to $1.3 billion for the current quarter. The guidance matched the consensus forecast of $1.17 billion.

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