Twitter revenue jumps when advertising is paid for


Twitter’s slump in its advertising offering paid off in the second quarter as it signaled a sharp jump in sales and expected sales in the current quarter above analysts ’estimates.

The San Francisco-based social media group said its second-quarter revenues jumped 74% year-on-year to $ 1.19 billion, exceeding consensus expectations of $ 1.06 billion.

He also estimated third-quarter revenues to be between $ 1.22bn and $ 1.3bn, above the analyst’s current estimates of $ 1.17bn, according to S&P Capital IQ.

However, the numbers of Twitter users in the U.S. have dropped from 1m since the first quarter, to 37m, which Ned Segal, chief financial officer, attributed to a calmer news cycle and people emerging from blocks, among other factors .

Twitter shares rose nearly 5 percent in activity hours after the release of earnings.

In a letter to shareholders, Twitter cited “revenue-generating improvements, strong sales execution and a broad increase in advertiser demand” as the main factors in revenue growth.

The company recently revised its offering to advertisers in an effort to improve their targeting capabilities and make it easier for smaller businesses to campaign. User engagement with ads has increased 32 percent, while the cost per engagement has increased 42 percent over the year, he added.

Twitter also reported daily monetizable active users – a household metric that counts the number of logged-in users to whom the platform displays ads – rose 11 percent over 206m, in line with analyst expectations .

The company has developed a number of features, including tools for tipping or subscribing to content creators, in an attempt to increase engagement and diversify sources of income in addition to advertising. Now the number of expenses and expenses is expected to grow by at least 30 percent for the full year, an increase from the 25 percent guidance it gave the previous quarter.



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