Twitter Q2 Earnings Report: Revenue Beats Wall Street Expectations, 74% Year-over-Year Growth! CEO: Bitcoin Will Become an Important Part of Twitter

Twitter released its second-quarter financial report on 7/22, with significant growth in "Monetizable Daily Active Users (DAU)" and overall revenue exceeding Wall Street's expectations. As a result, the stock price rose. The CEO emphasized during the conference that Bitcoin will become an important part of Twitter's future.

TWTR Surges Nearly 9%

According to the second-quarter financial report, Twitter's "Monetizable Daily Active Users (mDAU)" reached 11.9, up 11% year-over-year and 3% from the previous quarter. Other data points include:

• Total revenue for the second quarter was $11.9 billion, a 74% year-over-year increase
• Advertising revenue totaled $1.05 billion, up 87% year-over-year
• Total ad engagements increased by 32% year-over-year
• Cost per engagement (CPE) increased by 42% year-over-year

Net income for the second quarter reached $66 million, with a net profit margin of 6% and diluted earnings per share of $0.08. This is compared to a net loss of $1.38 billion, a net profit margin of -202%, and diluted earnings per share of $1.75 for the same period last year.

Additionally, both domestic and international user growth exceeded analyst expectations, leading to a nearly 9% increase in stock price during after-hours trading.

Bitcoin to Become a Key Driver for Twitter

During the Q2 earnings conference call, CEO Jack Dorsey reiterated his belief that "Bitcoin will become the native currency of the internet" and emphasized the importance of Bitcoin for Twitter's future, especially when considering decentralization and incentive mechanisms.

When asked by JPMorgan analyst Doug Anmuth how Bitcoin could be integrated into Twitter, Jack Dorsey explained:

Assuming there is a native currency on the internet, a currency that is globally accepted, we can expand the services of products like Super Follows, Subscriptions, and Tip Jar quickly to reach global users, rather than market by market. Therefore, we should continue to pay attention to Bitcoin and actively invest in it.

Super Follows and Subscriptions are products that signal Twitter's move towards a subscription model in the future, with Subscriptions referring to the monthly fee-based "Twitter Blue" service.

Tip Jar allows users to tip supporters on the platform through applications like Cash App, PayPal, or Venmo.

Jack Dorsey also mentioned Facebook as a comparison, noting that Mark Zuckerberg's push for the stablecoin Diem was based on similar needs and ideas.

However, Jack Dorsey believes that open-source is the way forward, which is why he is focusing on Bitcoin.