Twitter’s ad revenue crosses $1billion in Q4
Social networking platform, Twitter has posted solid results for the last three months of 2020, capping what CEO Jack Dorsey called an extraordinary year” for the platform.
The San Francisco-based company earned $222.1 million, or 27 cents per share, in the October-December period. That’s up 87% from $118.8 million, or 15 cents per share, a year earlier.
New users signed on in large numbers to follow the world’s events in real time despite the controversy around the U.S election misinformation and intensifying calls to ban former President Donald Trump.
Revenue grew 28% to $1.29 billion from $1 billion. Analysts, on average, were expecting earnings of 29 cents per share and revenue of $1.18 billion, according to a poll by FactSet.
Twitter had 192 million daily users, on average, in the third quarter, up 27% year-over-year. By comparison, Facebook had 1.84 billion daily users on average in December 2020, an increase of 11% year-over-year.
Twitter’s shares climbed $1.23, or 2%, to $61.10 in after-hours trading after the results came out. The stock had closed up $1.71, or 2.9%, at $59.87.
Apple is preparing to roll out a new privacy control in the early spring to prevent iPhone apps from secretly shadowing people, which could hurt companies that rely on tracking people to show personalized advertisements like Facebook and Twitter.
Twitter said it expects 2021 revenue to grow faster than expenses meaning it would turn a profit but did not give more specific guidance. And that’s assuming the coronavirus pandemic continues to improve and the company sees a modest” effect from new privacy changes associated with Apple’s iOS 14.
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