Twitter Just Experienced its Fastest Revenue Growth in Over 5 Years

Social media company Twitter has definitely rebounded from the pandemic as the company has seen the fastest revenue growth it has ever seen since 2014.

It was on Thursday that Twitter reported financial results for the second quarter and revealed that it’s revenue growth accelerated and surpassed analysts’ expectations. In fact, the company beat on both the top and bottom line.

The company also introduced its first subscription service in the quarter. The service gives users access to an Undo Tweet button and other features.

The company also released its Spaces audio chat feature on mobile devices for all users with at least 600 followers.

Twitter additionally announced a Tip Jar feature that will enable users to send money to others on the site.

“If the creator is creating great content, and you see it in Super Follows, or it’s just a tweet and somebody puts money in their Tip Jar, or it’s long-form content that we include in a different price point for a subscription, without ads, that complements it with other features that come from us, then we would make sure that part of the value that can be attributed to the creator where those dollars go to them and that we’re facilitating a transaction,” Ned Segal, Twitter’s finance chief, said on a conference call with analysts.

Shares rose about 9% in extended trading on Thursday afternoon.

For the second quarter, Twitter reported EPS of 20 cents, coming in a lot higher than the 7 cents that analysts had expected per Refinitiv.

Revenue at $1.19 billion was a lot higher than the $1.07 billion that was expected, per Refintiv.

Monetizable daily active users (mDAUs) at 206 million was slightly below the 206.2 million as expected by analysts polled by StreetAccount.

Twitter’s revenue grew 74% year over year in the quarter, according to a shareholder letter. The company cited “a broad increase in advertiser demand.”

Looking ahead, Twitter said it sees $1.22 billion to $1.30 billion in third-quarter revenue. Analysts polled by Refinitiv were waiting for $1.17 billion in revenue.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.