What happened
Actions of Twitter (NYSE: TWTR) increased sharply on Wednesday after the fourth quarter results of the popular messaging platform were released.
As of 3 pm EST, Twitter’s stock price rose by more than 12%.
And
Twitter revenue increased 28% year-over-year to $ 1.29 billion, driven by strong user growth in international markets. The social media company’s monetized daily active use (mDAU) – essentially the number of people who logged in and accessed Twitter applications – rose 27% to 192 million.
Advertising dollars follow the eye, and Twitter advertising revenue increased 31% to $ 1.15 billion. “Advertisers are benefiting from new ad formats, stronger attribution and improved targeting,” said Twitter chief financial officer Ned Segal in a press release.
Twitter delivered solid user and revenue growth in the fourth quarter. Image source: Getty Images.
Better yet, Twitter is becoming more profitable as its revenue base increases. Its operating revenue increased 65%, to $ 252 million, as its operating margin expanded to 20%, compared to 15% in the same quarter of the previous year.
What now
Looking ahead, Twitter expects to generate revenues of $ 940 million to $ 1.04 billion in the first quarter of 2021. In the meantime, management predicts an operating loss of up to $ 50 million as Twitter grows hires and increases its investments in technology to support its growth initiatives.
“Changes to our products to date are promoting healthier conversations for those who use our service, including advertisers and partners, and we are excited about our plans to continue innovating in 2021,” said CEO Jack Dorsey.