The shares of social media giant Twitter rallied today after the company reported its fastest revenue growth since 2014.
Twitter Posts Strong Q2 Earnings
Social media giant Twitter reported its second-quarter 2021 earnings earlier today. According to the company’s press release, total revenue was $1.19 billion, a massive increase from what was reported in the same quarter of 2020.
Twitter’s Q2 revenue totaled $1.19 billion, an increase of 74% year over year. Most of the revenue was generated from advertising, with $1.05 billion reported by the social media giant. The increase in ad revenue was due to Twitter a 32% increase year over year in its ad engagements and a 42% surge in cost per engagement.
As a result of the increase in Twitter’s revenue, the earnings were 20 cents per share compared to the 7 cents predicted by market analysts. Twitter introduced its first subscription service in the second quarter of the year, with users allowed access to the Undo Tweet button and other features.
The company also introduced the Spaces audio-chat feature on mobile devices for its users with at least 600 followers. Furthermore, Twitter launched the TipJar feature that allows users to send money to other people on the platform.
Twitter Expects An Increase In Revenue In Q3
The social media giant expects its Q3 revenue to grow even higher. Twitter estimates a Q3 revenue of $1.22 billion to $1.30 billion. However, analysts polled by Refinitiv estimate it to be around $1.17 billion.
The earnings report saw Twitter’s stock price rally by over 9% today, closing above the $69 mark. It is one of the best-performing tech stocks year-to-date. TWTR began the year trading at $54 per share. However, it has rallied by over 20% since then and could trade higher in the coming days and weeks.