Twitter Q4 Daily Active Users Hit 192M, Up 5M From Q3 And 27% From Year Earlier

Twitter hit daily active users of 192 million for the three months ended in December, up 27% year on year and five million more than the previous quarter as the social media giant beat Wall Street’s forecast on the top and bottom line.

Shares were up nearly 4% in after-hours trading.

User numbers did not include Twitter’s January decision to block former President Donald Trump – first temporarily then permanently — from the platform following the storming of the Capitol. Twitter earnings released after market close coincide with the start of Trump’s impeachment trial in the Senate for inciting the violence. CEO Jack Dorsey may comment on the flurry surrounding the former president’s suspension on a conference call set for 6 pm ET.

The company hinted that any blow was limited. As of the end of January, it said, the increase in daily active users was above the historical average for the past ew years and expected to grow 20% from the 2020 first quarter.

Revenue of $1.29 billion was up 28% year over year, reflecting better-than-expected performance across all major products and geographies, the company said Tuesday. Advertising revenue totaled $1.15 billion, up 31% year over year. That drove profit, with operating income of $252 million versus $153 million. Net income came in at $222 million, diluted EPS was $0.27.

“2020 was an extraordinary year for Twitter. We are more proud than ever to serve the public conversation, especially in these unprecedented times,” said CEO Jack Dorsey. “Our product changes to date are promoting healthier conversations for those who use our service, including advertisers and partners, and we are excited about our plans to continue innovating in 2021.”

Twitter forecast that revenue for the current first quarter of 2021 will come in between $940 and $1.04 billion.

Beyond the current quarter, Twitter said, user comparisons may suffer. “The significant pandemic-related surge we saw last year continues to create challenging comps, and may lead to quarterly growth rates in the low double digits on a year-over-year basis in Q2, Q3, and Q4, with the low point likely in Q2.

 

 

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