After a yr when the coronavirus pandemic and US presidential election helped enhance Twitter’s person base to new heights, the corporate is now warning that issues will possible decelerate in 2021. The corporate reported 192 million monetizable each day lively customers (mDAU), a rise from the 187 million it reported last quarter, and up 27 % from final yr. However the surge of progress that began final spring is predicted to gradual within the coming yr, Twitter mentioned.
“In 2020, progress from product enhancements reached an all-time excessive, with extra profit from elevated international dialog round COVID-19, the run-up to US elections, and different present Occasions,” Twitter wrote in a letter to shareholders. However 2021 will possible look very completely different for Twitter. (Although the corporate was fast to level on the market was “no change to our ambition” to hit the 20 % progress goal introduced last March, which helped CEO Jack Dorsey battle off a problem from activist buyers.)
We anticipate it will lead to a median annual progress charge of ~20% from This fall’19 to This fall’21. There isn’t a change to our ambition (introduced in March of 2020) to develop mDAU at a compound annual progress charge of 20% or extra from the bottom of 152M mDAU reported in This fall’19. $TWTR
— Twitter Investor Relations (@TwitterIR) February 9, 2021
Issues have been somewhat brighter for Twitter on the income aspect, with the corporate reporting $1.29 billion for the quarter, a rise of 28 % from final yr. Income for the yr was at $3.72 billion, a rise of seven % from 2019. Twitter, like most corporations that depend on promoting, had initially struggled at the beginning of the coronavirus pandemic, although income started to get better later within the yr. Twitter mentioned that it noticed a quick “dip” in advert spending across the November election, however that advertiser curiosity recovered within the lead-up to the vacations.
The outcomes come after a turbulent yr for Twitter. The corporate has needed to reckon with a disinformation disaster within the wake of a global pandemic, and an unprecedented presidential election that culminated within the platform permanently banning Donald Trump. On the identical time, the corporate has invested in new options like Fleets and Spaces. The corporate has additionally signaled that it’ll possible transfer towards subscriptions with its recent acquisition of publication platform Revue.