Shares of social media giant Twitter (NYSE:TWTR) were up 5% in pre-market trading after the company announced second-quarter earnings that showed the biggest revenue growth since 2014.
Twitter’s revenue grew 74% year-over-year in the second quarter, with the company citing "a broad increase in advertiser demand."
In the previous first quarter, revenue had risen 28%. The company said its second quarter revenue growth was the strongest since 2014.
And, after a $1.38-billion U.S. loss in the year earlier quarter, Twitter earned a second quarter profit of $65.6 million U.S. The number of monetizable daily active users, or Twitter users who view advertising on the site, grew by 11%, the company said.
During the second quarter, Twitter introduced its first subscription service, which gives users access to an "Undo Tweet" button and other features. The company also released its "Spaces" audio chat feature on mobile devices for users with at least 600 followers. And it announced a "Tip Jar" feature that will enable users to send money to others on the site.
With respect to forward guidance, Twitter said it sees $1.22 billion U.S. to $1.30 billion U.S. in third-quarter revenue. Analysts polled by Refinitiv had expected $1.17 billion U.S. in 2021 revenue.
For all of 2021, Twitter said that it expects headcount and total expenses to go up at least 30% and that revenue will grow faster than expenses.
Twitter shares are up 29% since the start of this year, while the S&P 500 stock index has risen 16% over the same period.
