Twitter posted higher-than-expected adjusted earnings for its second quarter, along with reporting strong growth in its number of daily active users.
The social networking company’s adjusted earnings came in at 20 cents per share, compared to the 19 cents per share expected by analysts polled by Refinitiv.
Total revenue for the company increased +18% year over year to $841 million, which exceeded analysts' estimate of $829.1 million (per Refinitiv survey).
According to Twitter, it achieved an average of 139 million monetizable daily active users (mDAUs) in the second quarter, which is +14% higher from the year-ago quarter. Average domestic mDAUs came to 29 million in the quarter, a +10% increase compared with a year earlier. International average mDAUs were 110 million in the quarter, +15% higher from the year-ago period.
Twitter said that its total advertising revenue increased +21% year-over-year (or +23% on a constant currency basis) to $727 million in the quarter. Its ad revenue growth in the U.S. particularly accelerated to +29%, compared with the +26% growth rate of the previous quarter.
Looking ahead, Twitter said that it is expecting revenue to range between $815 million and $875 million for the third quarter, and operating income to range between $45 million and $80 million for the same period.
For the full fiscal year, the company has reiterated its expectations of a 20% year-over-year increase in operating expenses as it invests in areas like health and conversation.