Twitter earns $68m net profit in Q1
02 May, 2021
Twitter reported a net profit of $68 million in the first quarter, compared with a loss of $8.3m through the same period a year ago, as the company saw an rise in the amount of monetisable daily active users (MDAUs).
The San Francisco-based microblogging site’s total earnings surged 28 % on an annualised basis to $1.04 billion, exceeding the analysts' average estimate of $1.03bn.
The advertising sales for the first quarter surged 32 % from the same period a year ago to $899m.
“People turn to Twitter to see and speak about what’s happening and we are helping them find their interests quicker while making it easier to follow and take part in conversations,” said Jack Dorsey, Twitter’s leader.
The common mDAUs - the word for users who can view advertisements - reached 199 million, an almost 20 per cent annual rise from the first quarter a year earlier.
Nonetheless it was almost 1 million less than the forecast by FactSet.
Users growth was driven by “ongoing product improvements and global conversation around current events”, Mr Dorsey said.
Twitter’s stock was a lot more than 11 % down in after-hours trading as the business missed user-growth expectations and offered lower earnings guidance.
In its guidance for the existing quarter ending on June 30, Twitter expects to earn revenue between $980m and $1.08bn. Analysts were expecting $1.06bn normally, according to Refinitiv.
The business predicts capital expenditure in the number of $900m to $950m in the 2021 financial year.
“Q1 was a good learn to 2021 … reflecting accelerating year-over-year growth in MAP [mobile app promotion] revenue and brand advertising that improved through the entire quarter,” said Ned Segal, Twitter’s chief financial officer.
“Advertisers continue to reap the benefits of updated ad formats, improved measurement and new brand safety controls."
The company invested a lot more than $250.7m on research and development through the quarter, a lot more than $50m above that in the same period last year.
A lot of the R&D allocation was allocated to engineering, product optimisation, design and research, the business said.
“We are attracting more great people to Twitter than previously and buying our highest priorities to provide on our long-term goals across consumer product, earnings product and platform,” Twitter said in an email to its shareholders.
Source: www.thenationalnews.com
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