Twitter revealed an increase in sales as ad product improvements pushed revenue beyond Wall Street goals, and it joined other big-tech digital advertising companies like Facebook and Google that spread their business during the coronavirus pandemic.
But Twitter said costs and expenses are also rising and that stock-based compensation for new employees will be more than expected this year, and it also said that user growth may slow in the coming quarters as the flow associated with COVID-19 fades.
Advertising revenue for the first quarter was $ 899 million, up 32% from the same period last year and surpassed analyst estimates of $ 890 million, according to IBES data from Refinitiv, while total revenue for the quarter was $ 1.04 billion, an increase of 28% based on Yearly and slightly higher than the estimate of $ 1.03 billion.
The San Francisco-based company also reported that its users reached 199 million daily active users, up 20% year-on-year, compared to analyst estimates of 200 million, according to FactSet data.
While Twitter has repeated its warning that the growth of daily active users who can be monetized may reach “double digits” in the coming quarters, and is likely to reach a low point in the second quarter, Twitter said it expects total revenue to grow faster than Expenditures this year, assuming the coronavirus is not a factor and that it sees a “modest impact” from Apple’s changes.
But it said in its forecasts that this year’s equity-based compensation expenditures will reach $ 600 million, up from the previous directive ranging between $ 525 million to $ 575 million, with increased employment, and expects capital expenditures to reach $ 900 million and $ 950 million for the whole year. .
Twitter said it expects the number of employees, as well as total costs and expenses, to increase by at least 25% in 2021 year-on-year.