Big picture: Twitter and Snap both reported revenue growth for the quarter ending June 2021, due in part to healthy user growth and good engagement rates for recently introduced product features. At the same time, the two social giants had a smaller-than-expected impact on ad revenue than Apple's app tracking transparency, which was introduced in iOS 14.5, but could have a bigger impact next quarter.
The latest financial report is released on Twitter, and it looks like the company managed to break analysts' expectations for Q2 2021 revenue and increase the company's stock by more than 5%. In the three months to June, the company generated revenue of $1.19 billion, up 74 percent from the same period last year. Twitter says it has reached 206 million monthly active users, an 11 percent increase year-over-year as a result of product improvements and more people using Twitter to stay up to date with recent and current events. But more importantly, Twitter pulled in $30 million in profit this year from a $274 million loss in the second quarter of 2020. Snap numbers also paint a great picture, and the company has seen the top user, with revenue growth doubling over the years to $982 million, the fastest rate recorded this year among the network giants. He is social.
The number of daily active users reached 293 million, a 23 percent increase from last year and a five-year high for a Spotlight-like company like TikTok SnapChat. Compared to the previous quarter, there was a 49% increase in engagement. Snap attributes the growth to a drop in recent restrictions, and CEO Evan Spiegel says SnapChat is designed for people to use when they're out and about.
No Snap is still posting a loss for the second quarter, but with $152 million, less than half of its revenue was recorded in the second quarter of 2020. Average revenue per user is currently $3.35, which is higher than analysts' expectations but still less than possible. Because most of the user growth has occurred outside Snape's main markets in the US and Europe, where advertisers typically reach users. Both Twitter and Snap note that Apple's infamous tracking transparency feature introduced in iOS 14.5 has less impact on ad revenue than expected.
Tracking helps users target more relevant ads. , and system affiliates, fear that people will be asked to make a decision so I am happy to do so, especially if they are briefly told about the impact on their privacy. In the month, app analytics firm Flurry said 96 percent of US iOS users have abandoned tracking on the app, prompting many advertisers to shift their spending to prioritize ads on Android. "The company has a higher selection rate than has been reported across the industry, which we believe is due in part to our community's trust in our products and business," Snap says. However, Twitter and Snap may have a greater impact in the next quarter. p>
Twitter and Snap saw significant second-quarter revenue growth