Twitter Reports Record Quarterly User Growth, Adds 14 Million Users in Q1

Social media company points to the “global conversation related to the COVID-19 pandemic” as one reason for user growth

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Twitter looks like the latest social media company that will enjoy a stock boost, after it reported record quarterly user growth and topped analyst sales projections when it reported its Q1 financials on Thursday morning.

The company, led by CEO Jack Dorsey, added 14 million monetizable daily active users during Q1 for an increase of 24% year-over-year; both the net user gains and the growth rate were both Twitter records for a single quarter. Twitter, in its letter to shareholders, said this was “driven by typical seasonal strength, ongoing product improvements, and global conversation related to the COVID-19 pandemic.” Overall, Twitter now has 166 million daily users.

For the first quarter, Twitter reported sales of $807.6 million, surpassing analyst estimates of $776 million; the company’s 11 cent loss per share was a penny shy of the 10 cent loss per share Wall Street anticipated.

Twitter’s share price, after already going on a strong run over the last month, was up 3.73% in premarket trading to $32.25 per share.

Recent user growth, via Twitter

Twitter, in its letter to shareholders, said these are “unprecedented times” and that the company is pleased to see users are leaning on the app for pandemic news, among other interests.

“Our work has never been more important,” the company said in its letter. “More people than ever are coming to Twitter to learn about COVID-19, to connect with their interests, and to find people with common experiences.”

One thing worth noting: the company’s ad revenue from March 11 until the end of the month dropped 27%, with Twitter saying the ad downturn was “particularly pronounced” in the U.S. due to the pandemic. Despite not sharing a Q2 revenue estimate, Twitter sounded as if it’s optimistic its ad concerns will subside as the U.S. economy begins to open back up. As the shareholder letter said: “Advertising weakness in Asia began to subside as work and travel restrictions were gradually lifted.”

More to come…

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