Jack Dorsey, chairman of Twitter.
Marco Bello/AFP via Getty Images
‘s second-quarter results were a pleasant surprise, with better-than-expected profit and revenue and financial forecasts that were more upbeat than anticipated.
Twitter (ticker: TWTR) stock jumped more than 4% in after-hours trading. It closed roughly flat at $69.56.
The social-networking platform reported second-quarter net income of $65.7 million, which amounts to 8 cents a share, versus a net loss of $1.4 billion, or $1.75 a share, in the year-earlier quarter. Revenue grew 74% to $1.2 billion.
Analysts had expected a per-share loss of 13 cents from revenue of $1.1 billion.
The loss of more than $1 billion in last year’s second quarter appears to include the reversal of a $1.03 billion 2019 second-quarter tax benefit related to restructuring various intangible assets.
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As was expected by Wall Street, Twitter’s advertising revenue rebounded considerably from last year’s second quarter, when advertisers slashed spending as the pandemic slammed the economy. Overall revenue fell 19% in the year-earlier quarter. Ad revenue rose 87% in the quarterly results disclosed Thursday.
“We continued to make significant progress on our direct response andbrand products with updated ad formats, improved measurement, and better prediction,” finance chief
said. “We are driving more value for advertisers with our strong push into performance-based advertising and expanded offerings for small and medium-size businesses.”
For the closely watched count of its monetizable daily active user base, Twitter reported 206 million for the second quarter, slightly ahead of the consensus estimate of 205.9 million. But the company’s U.S. user count—its most lucrative market—was 37 million, below estimates of 38.7 million. It marked a sequential decline from the first quarter when Twitter reported 38 million U.S. daily users.
One analyst has said banning former President
from Twitter’s platform could have a significant impact on growth in the user base.
Though there was widespread concern about the impact of a tracking change to
‘s (AAPL) iOS mobile operating system, Twitter said it had a modest impact on its business. The change may affect other internet platforms such as
Twitter said it is expecting a solid third quarter: Executives forecast revenue of between $1.22 billion and $1.3 billion. Even at the low end of the range, the results would be slightly ahead of the consensus estimate of $1.17 billion. Twitter didn’t issue a forecast for per-share earnings, but said revenue will grow faster than expenses through the end of the year.
Write to Max A. Cherney at email@example.com