Twitter achieves fastest revenue growth with ad improvements, shares climb 7%

Shares of Twitter jumped 7 per cent to $75 in trading after the bell. Changes by Apple to keep iPhone user data private, however, had hit advertisement revenue less than anticipated.

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.

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.

"As we enter the second half of 2021, we are shipping more, learning faster, and hiring remarkable talent," Twitter Chief Executive Jack Dorsey said in a statement on Thursday.

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.

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.

Its 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.

SOURCE: REUTERS