The social media platform failed to reassure investors after sales expectations for the second quarter fell short of analysts' estimates.
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2 min read
Twitter released its financial results for the first quarter on Thursday, which received mixed reception from investors.
The social media giant announced that its total revenue reached $ 1.04 billion for the first quarter, up 28% year over year. Ad revenue alone was $ 899 million, with total ad orders increasing 11% year over year and cost per order increasing 19% year over year.
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"People are turning to Twitter to see and talk about what's going on. We're helping them find their interests faster while making it easier to follow up and participate in conversations," said Jack Dorsey, CEO of Twitter, in a statement that came with the company's release of results. "The average monetizable DAU (mDAU) reached 199 million, an increase of 20% over the previous year and an increase of 7 million in a row due to ongoing product improvements and global conversations about current events."
While the social media platform posted a net profit of $ 68 million versus a net loss of $ 8 million, it failed to reassure investors after claiming that total revenue for the second quarter was between 980 and 1, $ 08 billion. According to CNBC, analysts had expected an average forecast of $ 1.06 billion.
As a result, Twitter shares fell 12% in premarket trading on Friday, Barron said.
The company also expects its workforce to grow 25% or more year over year in 2021, "resulting in an increase in the absolute dollar over the course of the year". At the end of the report, it was optimistically asserted that total sales will grow faster than spending this year, provided "the global pandemic continues to improve".