Twitter (TWTR) earnings Q1 2021

Twitter’s stock fell more than 11% after close Thursday after the company released its first quarter earnings. This was not in line with expectations for user growth and provided lower than expected revenue projections for the second quarter.

Here’s what Twitter reported against Wall Street estimates:

  • Merits: 16 cents per share, adjusted compared to 14 cents forecast by Refinitiv
  • Revenue: $ 1.04 billion versus $ 1.03 billion forecast by Refinitiv
  • Monetizable Daily Active Users (mDAUs): 199 million vs. FactSet expected forecast of 200 million

The company had revenue of $ 1.04 billion for the quarter, up 28% from $ 808 million last year. Twitter also reported a profit of $ 68 million, compared with a loss of $ 8.4 million a year ago.

Twitter announced that it expects revenue between $ 980 billion and $ 1.08 billion for the second quarter. According to Refinitiv, analysts expected an average forecast of $ 1.06 billion.

Twitter’s total monetizable daily users increased 7 million from the fourth quarter to 199 million, but fell short of analysts’ expectations of 200 million. The user base increased by 20% compared to the previous year. The quarter marked Twitter’s first period that former President Donald Trump was largely absent after being retired after the January 6 riot at the U.S. Capitol.

According to the report, Twitter ad revenue grew 32% year over year to $ 899 million, with total ad exposure increasing 11% over the same period.

The company said it was too early to understand the impact of Apple’s privacy changes in iOS 14.5. However, Twitter pointed out that by integrating Apple’s SKAdNetwork, the company has increased the total number of iOS devices it can reach with its MAP (Mobile Application Promotion) offering by 30%.

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