Jack Dorsey, CEO of Twitter and Square, speaks at a press event at CES 2019 on January 9, 2019 in Las Vegas, Nevada.
David Becker | Getty Images News | Getty Images
Twitter’s shares were stable in after-hours trading on Tuesday after the company reported fourth-quarter earnings as the company beat Wall Street earnings and revenue expectations. But the company fell short of Wall Street’s growth expectations.
Here are the key figures:
- Profit per share: 38 cents, adjusted, versus 31 cents predicted by Refinitiv
- Revenue: $ 1.29 billion vs $ 1.19 billion predicted by Refinitiv
- Daily Active Revenue Users (mDAUs): 192 million vs. 193.5 million expected, according to StreetAccount
Looking ahead, Twitter said it expects revenues to outpace spending by 2021, assuming the pandemic continues to improve and taking into account an expected “modest impact” from Apple’s upcoming privacy changes on iOS 14. However, the company warned that it expects a growth in the workforce. of more than 20% this year, with total spending up more than 25%.
Twitter said it expects sales of between $ 940 million and $ 1.04 billion in the first quarter. Analysts expected an average expectation of $ 965 million, according to Refinitiv.
Twitter’s total mDAUs grew 5 million from the third quarter to 192 million, but fell short of analyst expectations of 193.5 million. The user base was 26.3% higher than a year ago.
According to the report, Twitter’s ad revenue grew 31% year-over-year to $ 1.15 billion, while overall ad engagement grew 35% over the same period.
Twitter noted that revenues from its Mobile Application Promotion (MAP) offering, part of its direct response ad business, grew 50% year over year in the fourth quarter. The company announced the launch of its rebuilt MAP product on Monday, saying in its earnings report that it should “expand our addressable market and diversify our customer base.”
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