Twitter and Square CEO Jack Dorsey speaks during a press event at CES 2019 on January 9, 2019 in Las Vegas, Nevada.
David Becker | Getty Images News | Getty Images
Twitter shares were flat on the floor after hours on Tuesday after the company released its fourth quarter earnings as the company exceeded Wall Street’s earnings and revenue expectations. But the company failed to meet Wall Street user growth expectations.
Here are the key numbers:
- Earnings per share: 38 cents, adjusted, against 31 cents predicted by Refinitiv
- Recipe: $ 1.29 billion versus $ 1.19 billion predicted by Refinitiv
- Monetizable daily active users (mDAUs): 192 million vs. 193.5 million expected, according to StreetAccount
Looking ahead, Twitter said it expects revenue to grow faster than spending in 2021, assuming the pandemic will continue to improve and taking into account an expected “modest impact” of Apple’s privacy changes for iOS 14 However, the company has warned that it expects an increase in the number of employees by more than 20% this year, with overheads increasing by more than 25%.
Twitter said it expected revenue between $ 940 million and $ 1.04 billion in the first quarter. Analysts had expected an average of $ 965 million in guidance, according to Refinitiv.
Twitter’s total mDAUs have grown by 5 million since the third quarter to 192 million, but fell short of analysts’ expectations of 193.5 million. The user base grew 26.3% over the previous year.
Twitter ad revenue grew 31% year-over-year, to $ 1.15 billion, according to the report, with total ad engagement growing 35% over the same period.
Twitter noted that revenue from its Mobile Application Promotion (MAP) offering, a part of its direct response advertising business, increased 50% year-over-year in the fourth quarter. The company announced on Monday the launch of its rebuilt MAP product, and said in its earnings report that “it should increase our accessible market and diversify our customer base”.
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