 |
| Twitter announces financial performance and number of active users |
Twitter added fewer users to its platform on Thursday than Wall Street had expected. Spending growth will accelerate in the last quarter, causing the share price to drop 16%.
The company also warned that it will be difficult to predict the reaction of advertisers in the run-up to the presidential elections on 3 November.
Due to the numerous protests that followed the death of George Floyd in May, several companies temporarily suspended their advertising spending in the second quarter, saying similar moves could occur in the US general election, Twitter said.
Twitter said: In the third quarter of 2020, the number of daily active users reached 187 million, beating analyst expectations.
According to IBES data from Refinitiv, the company's daily active users (mDAU) reached 187 million for the third quarter, below analysts' expectations of 195.2 million users. The last quarter was 186 million.
For the quarter ended September 30, total revenue increased 14% year-on-year to $ 936 million, beating analyst estimates of $ 771.5 million.
Twitter Chief Financial Officer Ned Segal said on a conference call with analysts that the growth is being driven by updated ad formats, improved ad metering, and a return of pending events due to the pandemic.
Twitter expects the sales trend to continue outside the election period or even improve this quarter.
Advertising revenue in the third quarter increased 15% year-on-year to $ 808 million, beating expectations of $ 649.5 million.
Twitter has announced that it will delay launching new advertising products until 2021 as it pledges to adopt new requirements for mobile privacy.
Costs and expenses increased by 13% to $ 880 million over the same period last year, and the company said infrastructure spending had increased.
Net income for the third quarter was $ 28.66 million, or 4 cents per share, less than $ 36.5 million for the same period last year, or 5 cents per share.