Twitter has just announced profits above expectations for the first quarter, but failed to meet its targets for growth in the number of users. The company’s forecast is also lower than analysts’ expectations.
For the first quarter, Twitter reported revenue of $ 1.04 billion, up 28% from a year ago, with data license sales of $ 137 million, up 9% over last year, and advertising revenue of $ 899 million. Twitter reported first quarter net income of $ 68 million, or 9 cents per share. Adjusted earnings were 16 cents per share. Wall Street expected Twitter to earn 14 cents per share on $ 1.03 billion in revenue.
According to Twitter, monetizable daily active users were 199 million in the first quarter, up from 166 million a year ago. Analysts expected Twitter to report 200 million monetizable daily active users. The consequences of this miss were not long in coming: Twitter shares fell more than 8% after hours.
Growth in advertising revenue
For the second quarter, Twitter forecasted revenue of between $ 980 million and $ 1.08 billion, with an operating loss of between $ 170 million and $ 120 million. Analysts are forecasting second quarter revenue of $ 1.06 billion.
“The first quarter was a solid start to 2021, with total revenue of $ 1.04 billion, up 28% from a year ago, reflecting an acceleration in year-over-year growth. another MAP revenue and brand advertising that improved throughout the quarter, ”said Ned Segal, chief financial officer of Twitter.
“Advertisers continue to benefit from updated advertising formats, improved metrics and new brand security controls, contributing to 32% year-on-year growth in advertising revenue in the first quarter,” also said know the latter.