Twitter Warns User Growth Will Slow, Exceeds Sales and Profit Targets By Reuters

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3/3 © Reuters. FILE PHOTO: Twitter app viewed on phone screen 2/3

By Elizabeth Culliford and Munsif Vengattil (Reuters) – Twitter Inc (NYSE 🙂 posted 27% user growth on Tuesday, excluding Wall Street estimates, and warned that this rate would slow in the coming quarters as a boost from growth. pandemic. The social media company, which beat quarterly sales and earnings estimates, said expenses would rise 25% or more in 2021, but projected total revenue would grow faster than costs. In the fourth quarter, Twitter said it had 192 million average monetizable daily active users (mDAU), its term for the number of daily users who can view ads. Analysts were expecting 196.5 million, according to IBES data from Refinitiv. Twitter said user growth was driven by product improvements and more global conversations from events like the COVID-19 pandemic and the US elections. Some temporary changes to reduce misinformation around the US elections had little impact. negative in global user growth, he said. The social media company has been in the limelight amid global debates about what is allowed on the site, from its ban on former US President Donald Trump to its recent refusal to comply with a directive from the Indian government to block accounts linked to farmers’ protest. In a letter to shareholders, Twitter said the significant increase in users related to the pandemic last year created challenges for future earnings. Twitter’s advertising business benefited from the new ad formats and improved targeting, CFO Ned Segal said in the earnings release. Total revenue reached a record $ 1.29 billion, an increase of 28% year-over-year. Advertising revenues were $ 1,150 million, 31% more than in the same period of the previous year. Analysts on average expected revenue of $ 1.19 billion, with ad sales totaling $ 1.05 billion. Twitter acquired newsletter startup Revue last month. It also recently launched disappearing tweets called “fleets” as a low-pressure way for users to post to the site and said that late in the fourth quarter it launched a beta test of “Spaces,” its audio chat room feature that It has similarities with the voice. -Applications clubhouse. Net income increased to $ 222.1 million, or 27 cents a share, from $ 118.8 million, or 15 cents a share the prior year. Excluding articles, Twitter earned 38 cents a share, beating estimates of 31 cents. Twitter’s costs and expenses were $ 1.04 billion for the quarter, an increase of 21% year-over-year. He said he expected costs and expenses to increase in part due to plans to increase the workforce by more than 20%, particularly in engineering, products, design and research. Twitter said it expected total revenue in the current quarter to be between $ 940 million and $ 1.04 billion, compared to estimates of $ 965.14 million.

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