Twitter reports record revenues of $1.3bn but user growth slows
Twitter has delivered record revenues in the fourth quarter despite a turbulent year for the social media giant.
The San Francisco-based company reported total revenue of $1.29bn in the fourth quarter, up 28 per cent year-over-year, beating analyst estimates of $1.2bn. It brings total revenue for 2020 to $3.72bn.
Financial chief Ned Segal said this had partially been helped by new ad formats with ad revenue jumping 31 per cent over the year to $1.15bn.
Last month the company bought podcast app Breaker and newsletter service Revue, and said it had released a beta test of “Spaces”, an audio chatroom feature similar to Clubhouse late last quarter.
Data licensing and other revenue for the quarter rose nine per cent to $134m and forecasts “mid-single digit growth” for 2021.
There had been concerns that controversy surrounding US political events, notably the banning of former US president Donald Trump, would pose a problem for user numbers and ad revenue.
“2020 was an extraordinary year for Twitter. We are more proud than ever to serve the public conversation, especially in these unprecedented times,” chief executive Jack Dorsey said.
Twitter reported monetizable daily active users (MDUA) rose 27 per cent year-over-year to reach 192m, missing analyst estimates, and warned the rate would slow in upcoming quarters.
In a letter to shareholders, the social media company said the pandemic-related surge in users last year created challenges for future gains. In the first quarter it anticipates total revenue to be between $940m and $1.04bn.