Twitter Stock Surges as Q2 Earnings and User Growth Beat Expectations

Twitter surpasses analyst expectations for second-quarter earnings and revenue, driving shares up nearly 9 percent. The social media platform also reports strong growth in its newly adopted monetizable daily active users metric.

Twitter reports second-quarter earnings that beat analyst expectations on both revenue and profit, causing shares to jump 8.9 percent and adding $2.6 billion to its market cap. The company generates $841 million in revenue, an 18 percent increase from the previous year, while adjusted earnings per share reach 20 cents. This strong financial performance is largely driven by domestic growth.

The platform averages 139 million monetizable daily active users (mDAUs) during the quarter, reflecting a 14 percent year-over-year increase. Chief Financial Officer Ned Segal attributes this consistent user growth to successfully converting site visitors into active users by helping them find content faster. This quarter marks a permanent shift for the company, as it stops reporting monthly active users in favor of the mDAU metric to better reflect its ad-viewing audience.

Looking ahead, Twitter provides third-quarter revenue guidance between $815 million and $875 million. The company reiterates its plan to increase operating expenses by about 20 percent for the full fiscal year to invest in key priorities like platform health and conversation quality.

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