Twitter Inc (NYSE: TWTR) reported its financial results for the second quarter on Thursday that beat Wall Street estimates. The company attributed its hawkish performance to launching new products and features that brought in more active users. Shares of the company were about 8% up in after-hours trading.
Financial performance
Twitter reported $65.6 million of earnings in Q2 that translates to 8 cents per share. In the comparable quarter of last year, it had posted $1.38 billion of loss or $1.75 per share. On an adjusted basis, the social networking service earned 20 cents per share.
Twitter generated $1.19 billion of revenue that represents an annualised growth of 74%. According to FactSet, experts had forecast $1.06 billion of revenue and 7 cents of adjusted EPS.
Other notable figures and future guidance
Twitter valued its costs and expenses at $1.16 billion in the second quarter, including R&D and marketing. Twitter said its user base jumped 11% in Q2 versus the year-ago figure. The increase in DAUs (daily active users) matched FactSet consensus.
Twitter expects the users and advertisers-driven momentum to continue in the current quarter and beyond. For the fiscal third quarter, the microblogging platform forecasts $1.22 billion to $1.30 billion of revenue.
The San Francisco-based company expressed confidence that revenue will outpace costs and expenses this year that are likely to climb by 30%.
Saira Malik’s remarks on CNBC’s “TechCheck”
Ahead of the quarterly earnings, Nuveen’s Saira Malik, who is bullish long-term on Twitter, said on CNBC’s “TechCheck”:
“Twitter is less so about this quarter; it could be another quarter of tough comps. But in the long run, there’s a lot of market share gains for Twitter. They’re making the right investments that could double their revenue by 2023. We expect engagement and advertising to continue to pick up even as we come out of the pandemic. We have the Tokyo Olympics, a bunch of live events coming up. So, we are positive on Twitter long-term, and if it were a difficult quarter, we would look at that as a buying opportunity.”
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Wajeeh Khan
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