Twitter stock spikes on record revenue growth

Twitter's stock was up nearly 5% in after-hours trading Thursday after the tech giant reported top- and bottom-line revenue growth. User growth also met Wall Street expectations.

Why it matters: Twitter attributed revenue growth to improvements in its products and sales execution as well as "a broad increase in advertiser demand." Twitter's ad revenue was up 87% year-over-year.

• The company's chief financial officer Ned Segal attributed much of the company's growth to "significant progress" in its ad product, including "updated ad formats, improved measurement, and better prediction," per a press statement.
• He also noted the company has improved its performance ad products that cater to small- and medium-sized businesses.

The big picture: The advertising market has rebounded faster than expected, driving positive results for several ad-based internet companies. Snapchat also posted a big earnings beat.

• Twitter's year-over-year revenue growth numbers are the highest they've been in several years.

By the numbers via CNBC:

• "Earnings: 20 cents per share, adjusted, vs. 7 cents as expected by analysts polled by Refinitiv."
• "Revenue: $1.19 billion vs. $1.07 billion as expected by analysts polled by Refinitiv."
• "Monetizable daily active users (mDAUs): 206 million vs. 206.2 million as expected by analysts polled by StreetAccount."

What's next: In addition to beating Wall Street expectations, the company provided strong revenue growth forecasts for future quarters due to new products around subscriptions and commerce.

• Twitter unveiled a suite of new subscription products last quarter, with the hopes of doubling revenue by 2023.

Go deeper:

• Twitter's Q1 2021 earnings
• Twitter's Q4 2020 earnings