The global pandemic and US protests are forcing a pullback by advertisers on Twitter, but it's also led to an unprecedented surge of users. The result means its mDau's grew by 34% YoY, with the company seeing a steady but continued growth in users since the beginning of 2019.
However, Twitter CEO Jack Dorsey was upbeat in his statement: "Our product work is paying off, with tremendous growth in audience and engagement".
Despite Twitter's recent problems, however, shares in the firm rose by 4 per cent in early trading this morning, following the release of the second quarter figures.
Loss per share: $1.39, adjusted, which is weighed down by a $1.1 billion loss related to a noncash deferred tax asset, making it hard to compare to analyst estimates.
Twitter's advertising business was hit harder than its larger rivals Google and Facebook, and analysts had expected the bleeding to continue in the second quarter.
Twitter said Thursday user growth soared in the past quarter even as ad revenues took a hit amid civil unrest in the United States.
Twitter has announced it experienced a hard Q2, with total revenue down 19% year-on-year at $683m, admitting it continued to see headwinds from lower global advertising demand due to Covid-19 and civil unrest.
Twitter said ad revenue declined 15 per cent over the last three weeks of June, but appeared to have rebounded since then.
Twitter's average monetizable daily active users (mDAU) increased 34 per cent year over year to 186 million, above analysts' estimate of 176 million, in a rise it said was primarily driven by external factors such as shelter-in-place requirements and increased conversation around the COVID-19 pandemic.
Why it matters: Twitter, like other media companies, is facing coronavirus' double-edged sword. But she does not expect this to continue as stay-at-home restrictions begin to lift and people start returning to more normal routines. He said the company has focused "on increasing revenue durability, meaning that we have multiple lines of revenue to pull from", and "most importantly, we want to make sure that any new line of revenue is complementary to our advertising business".
Dorsey meanwhile confirmed reports that Twitter is looking at a subscription option but said that this would likely be "complementary" to the existing service. "We think there's a world where commerce is complementary". If all goes well, we may see the new subscription model in testing later this year. Hackers were able to get access to the accounts after the "manipulation" of a few Twitter employees, the company has said. It didn't identify the official but Dutch anti-Islam lawmaker Geert Wilders said it was him. Dorsey stated that this could potentially be added alongside the usual, ad-supported free tier, commenting that he has "a really high bar for when we would ask consumers to pay for aspects of Twitter".