The Limited Times

Now you can see non-English news...

Twitter reports jump in profits due to US election and pandemic

2021-02-10T06:10:31.894Z


The battle for the White House and the corona pandemic brought record sales to Twitter: The number of daily active users has increased significantly - but the prospects are less rosy.


Icon: enlarge

Banned after the Capitol storm: Donald Trump's Twitter account.

Photo: Christophe Gateau / dpa

The social network Twitter has made significantly more money in the past three months, even if the growth in user numbers remains subdued.

Sales rose 28 percent year-on-year to around $ 1.29 billion, as the short message service announced on Tuesday.

The quarterly profit jumped from just under 119 million dollars to 222 million dollars.

For some time now, Twitter has only cited the number of users that the service can reach with its advertising on a daily basis.

It rose from 187 to 192 million within three months.

One of the reasons for the growth: In the fourth quarter of 2020 there was a lot of attention for Twitter, among other things around the US presidential election and the tweets of the then US President Donald Trump.

The service blocked Trump's account in January until further notice.

The trigger was the attack by Trump supporters on the US Capitol and his expressions of sympathy for the attackers.

New hires and investments planned

In an initial reaction to the numbers in after-hours trading, the share initially fell by five percent, but then turned positive and at times rose by more than three percent.

At the same time, the company warned of weaker user growth after last year's boom.

The plus will not be so high in the next few quarters.

Product improvements as well as global discussions about the pandemic and the US elections had led to the higher number of new registrations, according to Twitter, while changes to combat misinformation had little negative impact.

In 2021, the company plans to spend significantly more money in order to continue on its growth path.

Mainly because of new hires and investments, the costs would rise by a quarter or more in the current year, announced Twitter.

However, revenues are expected to increase more rapidly.

For the current quarter, $ 940 million to $ 1.04 billion is expected.

Icon: The mirror

Source: spiegel

All business articles on 2021-02-10

You may like

News/Politics 2024-03-14T14:05:27.454Z

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.