.
Twitter shares were largely flat in volatile trading after the market closed.
The social media company, which beat quarterly sales and profit estimates, said costs would rise 25% or more in 2021 but expected total revenue to grow faster than costs.
In the fourth quarter, Twitter said it had 192 million average daily active users (mDAU) – its term for the number of daily users able to view ads. Analysts expected 196.5 million, according to IBES data from Refinitiv.
Twitter said consumer growth was driven by product improvements and more global talk from events like the COVID-19 pandemic and the U.S. election. Some temporary changes to reduce misinformation around the U.S. election had little impact on global consumer growth, he said.
The social media company has been the subject of controversy amid global debates over what is allowed on the site – from the ban on former US President Donald Trump to his recent refusal to comply with Indian government directives to link accounts. to thwart the farmers’ grievance.
In a letter to shareholders, Twitter said the sharp rise associated with a pandemic in consumers last year posed challenges for future gains.
The Twitter advertising industry has benefited from new forms of advertising and better targeting, Chief Financial Officer Ned Segal said in the earnings announcement.
Total revenue peaked at $ 1.29 billion, an increase of 28% year-over-year. Advertising revenue was $ 1.15 billion, up 31% from the same period a year ago.
Analysts had averaged revenue of $ 1.19 billion, with ad sales up to $ 1.05 billion.
Twitter got the start of the Revue newsletter last month. They also launched disappearing tweets called “fleets” as a low-pressure way to post users on the site and said it was at the end of Q4 on a beta test of “Spaces,” released a similar sound -based Clubhouse app.
Net income rose to $ 222.1 million, or 27 cents per share, from $ 118.8 million, or 15 cents per share a year earlier. Excluding items, Twitter earned 38 cents per share, beating estimates of 31 cents.
Twitter’s costs and expenses were $ 1.04 billion for the quarter, a 21% year-over-year increase. They said they expected costs and expenses to rise in part as a result of plans to increase the number of people by more than 20% especially in engineering, production, 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.
Reporting by Elizabeth Culliford in New York and Munsif Vengattil in Bengaluru; Edited by Lisa Shumaker