Twitter’s Q2 2021 ad revenue grows 87% YoY to reach $1.05 billion

Twitter has released its Q2 earning results remarking the steady growth of users as well as revenue on the platform. The Q2 was a strong quarter with total revenue of $1.19 billion, an increase of 74%, or 72% on a constant currency basis reflecting better-than expected performance across all major products and geographies. Total US revenue was $653 million, an increase of 79%. Total international revenue was $537 million, an increase of 69%, or 64% on a constant currency basis.

Strong revenue performance on the tech-giant platform also drove profitability, with GAAP operating income of $30 million and GAAP operating margin of 3%.

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As the platform has been the best place for people to discuss the topic of their interest, Twitter in Q2 has launched over 2,500 new Topics and users can now choose from more than 9,500 Topics across nine languages to stay up to date with what’s happening on Twitter. Average monetisable DAU (mDAU) has reached up to 206 million, which has increased by 11% YoY and up by 7 million sequentially.

Advertising revenue totalled $1.05 billion, which is an increase of 87% YoY, or 85% on a constant currency basis. Total ad engagements increased 32% year over year and Cost per engagement increased 42% year over year. By region, US advertising revenue totaled $562 million, an increase of 98% compared to a year-over-year increase of 22% last quarter. International ad revenue was $491 million, up 76%, or 71% on a constant currency basis, compared to a year-over-year increase of 45% last quarter.

Total ad engagements increased 32% due to the growing audience and increased demand for ads on a year-over-year basis. Cost per engagement (CPE) increased by 42%.

“In Q2, we announced Tip Jar, Ticketed Spaces, and Super Follows – features that will enable people to directly support creators through tipping and allow people to pay for access to exclusive live audio experiences with Ticketed Spaces and other exclusive content available via monthly subscription through Super Follows. We’ve also continued to rapidly ship improvements to Twitter Spaces in Q2, enabling all accounts with 600 or more followers to host a Space, creating more ways to find and drop into Spaces, improving 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,” Twitter said in a blogpost.

“We continue to enhance the global conversation on Twitter with partnerships across entertainment, gaming, news, lifestyle, and sports, reflecting the engaging conversations and diverse communities on Twitter. In Q2, we announced a first-of-its-kind, real-time, official Billboard Chart, “The Billboard Hot Trending powered by Twitter,” an extension to our five-year partnership with the WNBA to celebrate the league’s historic 25th season, and revealed more about our NBC Olympics programming. We also partnered with the NFL on a multi-year extension, which will bring highlights of the games’ biggest moments to Twitter — all the touchdowns, leaping catches, incredible runs, and celebrations after they happen, from season Kickoff to Super Bowl — along with exclusive NFL content on Spaces,” they added.

While communications has become a challenge after the pandemic struck, Twitter has always been a medium to connect people and provide authentic information on the current situation from credible sources. In Q2, the tech giant also offered help to a lot of people who were suffering through Covid19 by providing them hospital beds, oxygen cylinders and a lot more. Twitter introduced a Home timeline prompt pointing people to get vaccinated and to share vaccine related updates.

Data licensing and other revenue totalled $137 million, an increase of 13% year over year. US revenue totalled $653 million, an increase of 79% year over year. International revenue totalled $537 million, an increase of 69% year over year, or 64% on a constant currency basis.

The blog post noted, “We also made significant gains in age and location-based targeting for ads in Q2, including smarter defaults for geo ads and the launch of city targeting in our Ads Manager. We now have 175K new targetable city locations available, resulting in a more than 7x daily revenue increase from campaigns targeting cities post launch.”

To support App Tracking Transparency (ATT), Twitter also  issued prompts to 100% of iOS 14.5 or higher accounts that used the Twitter iOS application in Q2, and extended support for SKAdNetwork’s view-through attribution capabilities to their Mobile Measurement Partners (MMPs), allowing them to compare performance from opted-in versus opted-out audiences.

Q2 total costs and expenses grew to $1.16 billion in Q2, up 21%, driven by higher sales-related expenses, headcount growth, and infrastructure costs, partially offset by a $150 million non-recurring expense recorded in Q2 2020 related to an ongoing FTC matter.

For Q3 2021, the tech giant’s total revenue is expected to be between $1.22 billion and $1.3 billion. GAAP operating income is expected to be between a loss of $50 million and break even.

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