Twitter reports that it managed to beat quarterly sales and earnings forecasts, but expects user growth to slow in the coming quarters.
Quoted by Reuters on Wednesday, Twitter’s total revenue stood at $ 1.29 billion (about Rs 18.1 trillion), an increase of 28 percent year on year.
The social media company expects spending to rise 25 percent or more by 2021, but projects total revenue to grow faster.
In the fourth quarter, Twitter said it had 192 million daily users, on average, monetizable. Twitter’s term for the number of daily users who can see an ad is 26 percent more than the previous year.
Twitter said the user growth rate could drop to “double digits” starting in the second quarter.
The social media company said user growth had been fueled by product updates and more global conversations about events, such as the COVID-19 pandemic and the US elections.
Some of the temporary changes to reduce misinformation surrounding the US elections are said to have had little impact on global user growth, according to Twitter.
In a letter to shareholders, Twitter said that the pandemic’s significant increase in user numbers last year created a challenge for future earnings.
Twitter has been in the limelight amid a global debate about what is allowed on the site, from the blocking of former US President Donald Trump to his recent refusal to abide by the Indian government’s rules for blocking. accounts linked to farmers’ protests.
Twitter’s advertising business is benefiting from new ad formats and better targeting, CFO Ned Segal said in the earnings release.
Twitter’s advertising revenue totaled US $ 1.15 billion (about Rs 16.1 trillion), 31 percent more than in the same period last year.
Last month, Twitter acquired email services startup Revue. Recently, Twitter also launched a Stories-like feature called “fleets” and released a beta version of “Spaces,” an audio chat room feature.
The San Francisco-based company previously said it was exploring other revenue streams, such as the subscription concept.