Twitter finally appears to be catching the worm. Or at least its Q2 isn’t a can of worms à la last quarter’s earnings leak.
The company reported a solid Q2, beating Wall Street’s expectations with a 61% year-over-year increase in revenue to $502 million for the quarter, 25% of which came from direct-response – the “fastest-growing channel we have,” said Twitter CFO Anthony Noto.
Twitter, which also made its results available through a live stream on Periscope, had previously forecasted that its second-quarter revenue would fall between $470 million and $485 million.
Ad revenue overall clocked in at $452 million, up 63% YoY, driven by what Noto referred to as strong demand and growth in Twitter’s advertising base, which hit the 100,000 mark in Q2. Direct-response products such as Promoted Tweets, video cards and mobile app download cards also contributed.
Mobile ad revenue was responsible for 88% of that $452 million.
Although Twitter doesn’t break out revenue for MoPub, its mobile ad exchange business, Noto said it experienced a “similar growth rate” to Twitter’s overall advertising business.
Monthly active users also increased modestly by 15% YoY to 316 million, with mobile representing roughly 80% of total MAUs.
That said, Twitter founder and interim CEO Jack Dorsey (who’s also payment widget Square’s CEO) acknowledged that Twitter is not where he wants it to be, which is a platform that people actively engage with on a daily basis.
For Twitter to become that platform, Dorsey said, it has to ensure more disciplined executions, simplify the service, deliver value to users faster and better communicate Twitter’s value to lapsed and new users.
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