By
Bhushan Akolkar
March 22nd, 2024
As the report highlighted, Twitter’s total revenue in Q1 was up 28% ($808 million) year-over-year to $1.04 billion.
Social network company Twitter Inc (NYSE: TWTR) declined 13% in its shares in the pre-market trading session following news on lower-than-expected user growth in its Q1 earnings report and lower guidance for the coming quarter. Twitter released its 2021 Q1 financial statement on the 29th of April.
TWTR Shares Down in Reaction to Report on Low User Growth
Twitter shares are down over 13% to $56.60 in the premarket, following the Q1 earnings report. Except for a 2.88% loss recorded in the last five days, Twitter has been growing in the last 12 months. The company has surged 133.80% over the past year and added 20.20% since the year began. Also, TWTR pumped 28.81% in the last three months and another 1.97% over the past month.
At press time, Twitter stands at a market valuation of $51.99 billion.
According to the earnings results, Twitter’s number of monetizable daily active users (mDAUs) was 199 million. The total mDAUs grew 7 million from what was recorded in 2020 Q4 but did not meet analysts’ expectation of 200 million. The social network company added that its user base added 20% year-on-year.
Twitter CEO Jack Dorsey commented on the increased number of users. He said:
“People turn to Twitter to see and talk about what’s happening, and we are helping them find their interests more quickly while making it easier to follow and participate in conversations.”
The CEO added that the ongoing product improvements and global conversation around current events fueled the spike in mDAUs.
Twitter Reports Q1 Earnings
As the report highlighted, Twitter’s total revenue was up 28% ($808 million) year-over-year to $1.04 billion. Also, the revenue is higher than Wall Street’s estimate of $1.03 billion. According to the company’s chief financial officer Ned Segal, the growth signifies “accelerating year-over-year growth in MAP revenue and brand advertising that improved throughout the quarter.”
Under the total revenue, advertising revenue pumped 32% or 30% in constant currency to total $899 million. The summed up revenue consists of total ad engagement and cost per engagement gains. Total ad engagement gained 11% year-on-year, while cost per engagement (CPE) added 19% year-over-year.
Additionally, data licensing and other revenue stood at $137 million, a 9% advance over the previous year. Also, US revenue increased 19% year-over-year to $556 million. International revenue also surged 41% to $480 million.
During the same quarter, Twitter saw adjusted earnings per share of 16 cents. The adjusted earnings topped 2 cents over an earlier forecast of 14 cents. Furthermore, the company saw a profit of $68 million, a contrast to the $8.4 million law posted in the previous year.
In addition, Twitter guided in the report that its expectation for revenue in the coming quarter is between $980 million and $1.08 billion. However, Refinitiv said that analysts were executing guidance of $1.06 billion on average.