Despite its ban in Nigeria and India, Twitter’s second quarter report, showed improved performance.
In its released earnings report for Q2, Twitter declared total revenue of $1.19 billion.
Compared to the $683 million that was posted in Q2 2020, Twitter’s revenue grew by 74 per cent, showing a remarkable bounce back from the harsh economic effects of the COVID-19.
The revenue growth surpassed what analysts had projected for the company. According to Refinitiv, analysts expected Twitter to post revenue of $1.07 billion but it over-delivered with $1.19 billion. After a loss of $1.38 billion in Q2 of 2020, the company recorded a profit of $65.6 million.
The capital gains that will be distributed to each shareholder also surpassed what analysts expected. Each shareholder will earn 20 cents per share instead of the seven cents per share that were expected.
Twitter’s performance fell shy of expectations in the area of monetisable Daily Active Users (mDAU). Its total mDAU is 206 million, which is less than the 206.2 million users that are expected at the end of the quarter. It recorded an 11 per cent growth in the monetisable daily active users or users, who view advertisements that are placed on Twitter.
Twitter introduced a series of features designed to help more people find new reasons to use the platform. It added Tip Jar, Ticketed Spaces, and Super Follows. The features also let people directly support creators by tipping or paying for access to exclusive live audio experiences with Ticketed Spaces. Users can also pay for other exclusive content that is only available via monthly subscription through Super Follows.
After it launched Spaces to rival Clubhouse’s audio service, Twitter says it has continued to rapidly ship improvements to the service.
Besides enabling all accounts with 600 or more followers to host a Space and creating more ways to find and drop into Spaces, Twitter says it also improved “live captions for accessibility, making Spaces available via mobile and desktop web, and providing support for co-hosts as well as the ability to schedule and set reminders for upcoming Spaces.”
While Twitter ban is still enforced in Nigeria and India, the US remains its strongest market with a 79 per cent increase in revenue year-on-year to $653 million. Japan is still its second-largest market and it grew by 40 per cent in the quarter. The revenue from Japan amounts to $151 million, which is 13 per cent of the entire revenue for the quarter.
In Q3, the company expects to see revenue of $1.22 billion to $1.30 billion. This is more than the $1.17 billion that analysts are predicting, according to Refinitiv.
Twitter CEO, Jack Dorsey, revealed that a significant part of the plans to further expand the business is hinged on Bitcoin. This is not the first time Dorsey is referencing Bitcoin, but it is the first time that he is specific about its application.
He explained further that digital currency would be integrated into existing Twitter products and services including commerce, subscriptions and other new features like the Tip Jar and Super Follows.
During the investors’ call, Dorsey said, “If the internet has a native currency, a global currency, we are able to move so much faster with products such as Super Follows, Commerce, Subscriptions, Tip Jar, and we can reach every single person on the planet because of that instead of going down a market-by-market-by-market approach.”