Twitter has posted its Q2 2021 earnings results. It shows stable growth in users and revenue. The platform has been ramping up efforts for its expansion goals for the next three years.
The Monetizable Daily Active User (mDAU) numbers have reached the 206M mark. This has increased 11% from the same period last year, and 7M more from the first quarter this year.
The growth came from international markets. Twitter’s mDAU dropped slightly in the US from last quarter.
Twitter only added one million users in the US from last year. The company earns most of its revenue from the US. If local growth stagnates, it will be an issue.
The social network saw a 69% increase in international revenue. It somewhat eases concerns. But they still must monitor this moving forward.
Recently, Twitter has argued with Indian regulators over the latter’s request to give them more control on content removals and user info requests in the country.
Twitter rejected the request initially. Now, it wants to comply with the ruling. But the tension has brewed between parties.
If the Indian government would limit or ban Twitter, it will be a big blow to the company’s growth.
Until then, the current numbers show how Twitter is on track to meet its growth estimates. It has renewed focus on product development to spur interest. With Fleets, it is a different story.
Last week, Twitter said it would retire Fleets by next month. It will focus more audio social service Spaces.
Twitter will also add a dedicated tab for Spaces in the app. This move will maximize its take on the audio social trend and boost user engagement.
Twitter says that research and development expenses grew 39% in second quarter this year.
When it comes to revenue, the company had $1.19 billion in Q2, an increase of 74% from the same quarter last year.
“Total international revenue was $537 million, an increase of 69%, or 64% on a constant currency basis. Japan remains our second largest market, growing 40% and contributing $151 million, or 13% of total revenue in Q2. Revenue from Japan declined on a sequential basis in Q2, reflecting typical country-specific seasonality,” said Twitter.
“[We saw] strong demand from advertisers looking to launch new products and services, and connect with what’s happening on Twitter across a number of key verticals, including technology, auto, media, entertainment, and fashion. Our strong momentum in MAP and performance ads also continued in Q2.”
Twitter notes that SMB customers grew overall ad spend in the quarter. Total ad engagements had a 32% increase.
The company added a general note on Twitter Blue in its shareholder letter.
“We’ve been encouraged by the initial response and look forward to further innovating and growing this new revenue stream with additional features, geographic expansion, and other offerings as part of our revenue durability strategy,” explained Twitter.
Overall, Twitter had a strong second quarter this year. We will see how it positions the platform to reach its target of 123 million more users in the next two years.