Twitter Inc. reported revenue growth above Wall Street estimates after rolling out new updates to targeted ads to help brands reach new potential customers, sending the company’s shares up 5% to $73 after markets opened.
Since the beginning of the year until now, Twitter has sought to provide services in new areas, such as chat rooms limited to audio and newsletters, in an attempt to reverse the stagnation that its business has suffered for years with the aim of doubling its annual revenue by 2023, noting that twitter’s total advertising revenue during the second quarter amounted to $1.05 billion, a growth of 87% compared to the same quarter last year and exceeding Wall Street analysts’ estimates of $909.9 million.
Twitter has worked to improve the effectiveness of its ads by adding 2,500 new categories of topics during the past quarter to help users find content they are interested in, which in turn provides more data to Twitter to help it target ads more accurately, as these improvements contributed to supporting ad revenue, especially with the increased demand from advertisers who are racing to reach customers after the reopening of the country following the pandemic crisis.
The strong results of Twitter and its tech rival Snap, which reported 116% revenue growth. Read more [Snapchat Beats Expectations With Highest Growth In 4 Years]. However, The digital advertising market is booming right now.
Total revenue, which includes Twitter’s data licensing revenue, grew 74% year-over-year to $1.19 billion, topping analysts’ estimates of just $1.07 billion, on an adjusted basis. In addition, Twitter earned 20 cents per share during the second quarter, easily beating analyst expectations of just 7 cents.
Twitter expects total third-quarter revenue to range between $1.22-1.3 billion, slightly higher than analysts’ estimates, who have unanimously agreed that revenue will be $1.17 billion on average.