In the morning news on July 23, Twitter today announced its financial report for the second quarter of fiscal year 2021 as of June 30. According to the report, Twitter’s revenue in the second quarter was US$1.190 billion, an increase of 74% compared to US$683 million in the same period last year. Excluding the impact of exchange rate changes, it was a year-on-year increase of 72%; net profit was US$65.6 million. The net loss for the same period last year was US$1.378 billion.
After the earnings report was released, Twitter CEO Jack Dorsey and CFO Ned Segal attended the subsequent earnings conference call to interpret the key points of the earnings report and answer questions from analysts.
JPMorgan Chase analyst Doug Anmuth: I have two questions. I want to ask Jack the first question. What do you think of the further integration of Bitcoin and Twitter platforms, especially the combination with some new products, such as Superpowers and Space? In the future, can Bitcoin drive user interaction and monetization on the platform? Second question, would you like to ask Ned to talk about MAP (mobile application promotion) and other DR (direct response advertising) in product adjustments? And how do these resonate with DR advertisers? In terms of MAP’s revenue, have you seen an increase in the base of advertisers or an expansion in scale?
Jack Dorsey: I have been thinking about Bitcoin. Bitcoin is very important. In my opinion, paying attention to the use cases of Bitcoin in the Internet and how to make Bitcoin the best candidate for Internet currency, I think this is what we need to pay attention to. If we use cryptocurrency, our product promotion and product use will be much faster, such as super follows, e-commerce, subscription waiting, we can reach anyone on the planet, instead of entering one market by one. This is a very important part of our future. I think transparent currency has many innovations, especially in terms of social media decentralization and providing more economic incentives. Therefore, I believe that Bitcoin is very important to Twitter and Twitter shareholders. We will continue to focus on this field, and we are not the only ones doing this. For example, Facebook, they are also developing Libra (or Diem? I don’t know what the name of this project is now). I personally appreciate their hard work, which is the right way forward. Therefore, we pay attention to Bitcoin, and we should really pay attention to Bitcoin. I believe that Bitcoin can bring speed and great innovation.
Ned Siegel: Let me answer the second one. First, when we talk about the turning point in the number of advertisers on Twitter, this is ahead of us. The performance of SME advertisers in the second quarter remained strong. What we do in this area is still to help them increase the consumption of existing consumers. At the same time, we also launched a pilot project in April. We will continue to provide convenience for small and medium-sized enterprises, through the new version of the rapid promotion function, buy ads on Twitter, to help them understand the value proposition. Regarding MAP, we are quite satisfied with the current progress. With the accelerated launch of the product in February, we saw a strong momentum for development, which was maintained in the second quarter. I can give a few interesting facts. For example, anchors, as they continue to expand their business and release new programs to attract people’s interest in their services, in the second quarter, their advertising spending on Twitter increased by 40% from the previous quarter. We are also testing trial-playable ad formats for gamers, that is, you can try out the game in the ad. There are also multiple destinations in our MAP, and you can let users who click in to jump to different places. These are excellent examples. Some innovations allow you to target users of more age groups and locations, as well as users with limited advertising tracking before. We have made very good progress here, and we also believe that the development momentum of MAP will be stronger in the second half of the year.
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