Twitter warns of weaker user growth after record revenue

Twitter has warned of weaker user growth following the coronavirus as well as politics-related boom. The increase will not be as high in the next quarters, the US short message service announced on Tuesday.

twitter-logo-1200

In the fourth quarter, which also saw the US presidential election, the number of monthly active users rose by 26 percent to 192 million. This was less strong than analysts had expected. However, flourishing advertising revenues, also thanks to new ad formats, ensured a 28 percent increase in sales to an unprecedented 1.29 billion dollars. And profits rose by a good three percent to 222 million dollars.

 

Trump as a driver of business

Product improvements, as well as global discussions about the coronavirus pandemic and the U.S. election, have led to new signups, according to Twitter, while changes to combat misinformation have had little negative impact. Twitter has been in the headlines repeatedly over the past four years, mainly due to now-elected president and perennial Twitterer Donald Trump - most recently following his lifetime ban.

Still, to keep users happy, Twitter is offering some innovations like Fleets - short messages that disappear again - and is also testing an audio app similar to the popular Clubhouse format.

However, Twitter also announced that costs would rise by a quarter or more in the current year, mainly due to new hires and investments. Revenues, however, are expected to grow faster than costs, it added. For the current quarter, revenues of 940 million to 1.04 billion dollars are expected. (SDA)

(Visited 45 times, 1 visits today)

More articles on the topic