Twitter beats revenue targets with ad improvements, shares jump 7%

Record ID: 1628030

  • Title: Twitter beats revenue targets with ad improvements, shares jump 7%
  • Date: 22nd July 2021
  • Summary: LONDON, ENGLAND, UNITED KINGDOM (FILE - JUNE 11, 2019) (REUTERS) ***WARNING: CONTAINS FLASH PHOTOGRAPHY*** VARIOUS OF TWITTER FOUNDER AND CEO, JACK DORSEY, DURING INTERVIEW WITH REUTERS SAN FRANCISCO, CALIFORNIA, UNITED STATES (FILE) (REUTERS) VARIOUS OF TWITTER HEADQUARTERS EXTERIOR
  • Embargoed: 5th August 2021 21:29
  • Keywords: COVID-19 Twitter earnings social media
  • Location: NEW YORK, NEW YORK, + SAN FRANCISCO, + LOS ANGELES, CALIFORNIA, UNITED STATES, LONDON, ENGLAND, UNITED KINGDOM
  • City: NEW YORK, NEW YORK, + SAN FRANCISCO, + LOS ANGELES, CALIFORNIA, UNITED STATES, LONDON, ENGLAND, UNITED KINGDOM
  • Country: USA
  • Topics: Company News Markets,Economic Events,United States
  • Reuters ID: LVA002EMXC37R
  • Aspect Ratio: 16:9
  • Story Text: Twitter on Thursday (July 22) reported higher revenue growth than Wall Street had expected, as the social media platform rolled out ad targeting improvements and said changes by Apple to keep iPhone user data private had hit ad revenue less than anticipated.
    Shares of Twitter rose 7% to $75 in trading after the bell.
    The San Francisco-based company now expects headcount and total costs and expenses to grow at least 30% for the full year, up from its previous guidance of 25%, as the company invests in its engineering and product teams, however.
    Twitter's U.S. user base declined by 1 million over three months from the previous quarter due to a lighter news cycle in the United States, Twitter said, with total users worldwide in line with Wall Street targets.
    Since the start of the year, Twitter has raced to introduce products in new areas like audio-only chat rooms and newsletter publishing, in an effort to turn around years of business stagnation and reach its goal of doubling annual revenue by 2023.
    Twitter reported 206 million monetizable daily active users (mDAU), its term for users who are served advertising, for the second quarter ended June 30, matching analyst targets of 205.9 million users, according to IBES data from Refinitiv.
    Advertising revenue totaled $1.05 billion, up 87% from the year-ago quarter, and beat Wall Street estimates of $909.9 million.
    Twitter has worked to improve the effectiveness of its ads, which have traditionally lagged larger rivals like Facebook, which holds vast troves of data on users.
    Those improvements, along with higher demand from advertisers seeking to reach consumers as countries reopen from pandemic restrictions, helped propel ad revenue, Twitter said.
    Total revenue, which also includes revenue the company earns from data licensing, rose 74% year-over-year to $1.19 billion, beating analyst estimates of $1.07 billion.
    Twitter forecast third quarter total revenue to be between $1.22 billion to $1.3 billion, roughly in line with or slightly ahead of consensus analyst estimates of $1.17 billion.
    The company said it was still too early to determine the long-term impact of new privacy controls that Apple Inc., implemented in April, which are designed to limit digital advertisers from tracking iPhone users without their consent, but added that revenue impact during the second quarter was lower than expected.
    (Production: Aleksandra Michalska)
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