Twitter and Square CEO Jack Dorsey will speak at a news event at CES 2019 on January 9, 2019 in Las Vegas, Nevada.
David Becker | Getty Images News | Getty Images
Twitter stock rose slightly in after-hours trading Tuesday after the company reported earnings in the fourth quarter, as the company outperformed Wall Street’s earnings and revenue expectations. But the company did not meet Wall Street’s customer growth expectations.
Here are the key numbers:
- Earnings of each installment: 38 cents, adjusted, vs. 31 cents predicted by Refinitiv
- Income: $ 1.29 billion vs $ 1.19 billion forecast by Refinitiv
- Daily active users (mDAUs): 192 million vs. Expected at 193.5 million, according to StreetAccount
Looking ahead, Twitter said it expects revenue to grow faster than costs in 2021, acknowledging that the pandemic continues to develop and attract attention to a “small impact” that would be expected from Apple’s upcoming privacy changes to iOS 14. However, the company has warned that it expects growth in numbers. of more than 20% this year, with total costs going up more than 25%.
Twitter said it expects revenue of between $ 940 million and $ 1.04 billion in the first quarter. Analysts expected an average lead of $ 965 million, according to Refinitiv.
Twitter also noted that despite the “unusual conditions” in the first quarter, the increase in “average total mDAU” through the end of January was above the average for the past four years. This stat may have been referring to Jan’s decision. 8 The company permanently suspended the account of former President Donald Trump. The company said it expects to see mDAU growth of around 20% year-over-year in the first quarter.
“We are a platform that is obviously much more than any single topic or account,” Twitter CEO Jack Dorsey told analysts on call.
Later, when asked a variant of the same question, Dorsey reiterated that 80% of Twitter listeners are outside the U.S. Dorsey added that Twitter users are capable of more than 6,000 follow a different theme, explaining that these themes drive growth.
“We have a global service. We also don’t just rely on news and politics to manage Twitter,” Dorsey said. “It is for this reason that I believe I can pursue such vital and important topics and interests. “
Twitter’s total mDAUs grew 5 million from the third quarter to 192 million but fell shy of analyst expectations of 193.5 million. The consumer base rose 26.3% compared to a year ago.
Twitter advertising revenue grew 31% year-over-year to $ 1.15 billion, according to the report, with total advertising participation growing 35% over the same period.
Twitter noted that revenue from its mobile application promotion (MAP) offering, part of its direct response business, was up 50% year-over-year in the fourth quarter. The company announced Monday that it has launched its rebuilt MAP product, and said in its earnings report that it should “increase our address market and diversify our customer base.”
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