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Snap, Twitter Surge On Q2 User Growth, Revenue Beats

Two social media stocks reported second-quarter earnings Thursday after hours and saw a surge in active users and revenue.

Snap Earnings: In the second quarter, Snapchat’s parent company Snap Inc (NYSE: SNAP) saw daily active users increase 23% year over year to 293 million.

Daily active users were up in all three regions of North America, Europe and the Rest of World on both a year-over-year and sequential basis. The company also said it saw sequential and year-over-year growth for daily active users for both iOS and Android platforms.

The company continues to invest in new content and launched new video content in the quarter, helping to keep its user base engaged and gain new users. Spotlight daily active users grew 49% year-over-year and daily time per user in the U.S. was up 60% quarter-over-quarter.

Snap reported quarterly earnings of 10 cents per share, which beat the consensus estimate by 11 cents. The company reported quarterly sales of $982.11 million, which beat the analyst consensus estimate of $844.98 million by 16%.

Related Link: Snap Vs. Twitter: A Technical Comparison Ahead Of Earnings

Twitter Earnings: Twitter Inc (NYSE: TWTR) announced 74% year-over-year revenue growth to $1.19 billion in the second quarter, which beat the analyst consensus estimate of $1.06 billion by 12%.

Twitter saw its monetizable daily active users increase 11% year over year in the quarter. The company ended the second quarter with 206 million mDAU, which was up from 186 million in the prior year and 199 million in the first quarter.

The company’s average mDAU were 37 million in the U.S., down slightly from 38 million in the first quarter. International mDAU were 169 million compared to 162 million in the first quarter.

Twitter reported adjusted quarterly earnings of 20 cents per share, which beat the analyst consensus estimate by 13 cents.

What’s Next: Snap shares are up 14% to $71.50 in after-hours trading, while Twitter shares are up 5% to $73.

Facebook Inc (NASDAQ: FB) is set to report earnings on July 28. Given the strong advertising revenue from Twitter and growth in both revenue and users for Twitter and Snap, analysts and investors will likely be expecting the same from the social media giant.

Photo: Bastian Riccardi on Unsplash

© 2021 Benzinga does not provide investment advice. All rights reserved.

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