Twitter has been posted Q2 earnings results, Which shows that both users and revenue are growing steadily, as the platform is committed to maximizing growth based on its growth Ambitious expansion goals In the next three years.
First, about users-Twitter’s monetizable daily active users (mDAU) number is now as high as 206 million, an increase of 11% year-on-year, and an increase of 7 million on top. Q1 diagram.
As you can see here, all of this growth comes from the international market, and Twitter’s mDAU in the United States actually decreased slightly from the previous quarter (38 million) in the United States. the first season).
This may be the result of extensive discussionTrump bumped‘Many people speculate that the former president’s love for the platform may have stimulated the increase in usage. This may or may not be correct, but as Trump is no longer in the headlines now, it may be that fewer people are discussing issues that have led to more tweets, which may have an impact.
Whether this will become an ongoing concern is another question. Twitter only added 1 million U.S. users in the past yearAnd since most of the company’s revenue comes from the US market, this may become a problem if local growth continues to stagnate. Twitter’s international revenue has also increased by 69%, which has alleviated this concern to a certain extent, but it is still an element of monitoring future development.
Another area of concern may be the growth of the platform in India, which is also a key factor in its overall usage statistics.Indian Twitter use Soared by about 74% During the pandemic, as the region’s 18.8 million users Now it has become the company’s third largest user market after the United States and Japan.
India is the main growth market for all social applications, but recently, Twitter Conflicts with Indian regulators New rules that give the Indian government more control over local content deletion and user information requests.After initially rejecting the update request, Twitter now says it will Comply with the ruling, But tensions between the two parties have been brewing. If the Indian government takes further action against Twitter, which it has repeatedly threatened, this could cause a major blow to its broader growth momentum.
But it hasn’t, and the data shows that Twitter is likely to be on track to achieve its growth forecasts, and its renewed focus on product development can help inspire new interest—even though, like Fleets, they don’t all go according to plan.
Last week, Twitter announced that it would Retire the fleet next month, But the benefit of this is that it will focus more on its audio space, and it will now take over the top of the feed real estate. Twitter also added a new dedicated label to Spaces in the app because it hopes to take advantage of audio social trends and increase user engagement.
Some people will think Fleets is a failure, but Twitter is trying and iterating, and the fact that it is so fast seems to be positive, even if it does take up development resources. Twitter stated that research and development expenses have increased by 39% during this period.
In terms of revenue, Twitter announced a strong performance of US$1.19 billion in the second quarter, an increase of 74% year-on-year.
according to Twitter:
“Total international revenue was US$537 million, an increase of 69%, and a growth of 64% at constant exchange rates. Japan remains our second largest market, growing by 40%, contributing US$151 million, accounting for 13% of total revenue in the second quarter. %. Revenue from Japan fell quarter-on-quarter in the second quarter, reflecting typical country-specific seasonality.”
The vast majority of Twitter’s revenue comes from advertising (US$1.05 billion), and interest in advertising has surged due to the promotion of e-commerce due to the pandemic. As the vaccine rollout continues, this may remain strong in the second half of this year (after the Olympics), and more regions hope to fully reopen and resume normal operations.
“[We saw] Advertisers want to launch new products and services, and there is a strong need to connect with what’s happening in many key verticals on Twitter, including technology, automotive, media, entertainment, and fashion. Our strong momentum in MAP and performance advertising also continued in the second quarter. “
Twitter also pointed out that due to more users and more ad inventory, SMB customers increased their overall ad spending during the quarter, while total ad engagement increased by 32%.
“Cost per participation (CPE) increased by 42%, mainly due to the impact of COVID last year, and similar prices for most advertising formats increased.
Therefore, due to the downturn in the second quarter of 2020, Twitter stated that the growth here is disproportionate, but it may be worthwhile to monitor your Twitter CPM numbers anyway.
Another particularly interesting element is Twitter blue, A new subscription product for the platform, is currently being tested in Australia and Canada. This option is Twitter’s first major move towards monetization of direct users, and if users are willing to pay for additional elements of tweets, this may provide another way of income.
So, have people paid so far?
Twitter included a general note regarding the Blue acquisition in its shareholder letter:
“We are encouraged by the initial response and look forward to further innovation and growth of this new revenue stream through additional features, geographic expansion and other products as part of our revenue persistence strategy.”
This does not provide much insight (Twitter in its First quarter update), but it may be too early to draw conclusions at this stage, because the product was only available last month.
Also, if you want to know why Twitter recently inserted more topic tips in your tweet feed:
“We have also improved our ability to quickly connect people with the best conversations about their interests by making better use of onboarding signals and introducing interactive feedback on topic tweets in the timeline of the homepage. So now 41% Of new customers who support languages pay attention to topics when registering, and each customer averages about 14 topics.”
Therefore, Topics is working hard to improve Twitter content discovery, which helps maximize engagement.In other words, Twitter did notice recently that it is Reduce the frequency of topic prompts After user complaints.
Overall, this is a strong update from Twitter, although in terms of year-on-year comparisons, it did benefit from the slowdown in the second quarter of 2020.I’m not sure how it positions the company to achieve its goals 123 million users By 2023, its revenue figures seem to be on track and heading in the right direction.