Twitter reported that its revenues grew 28% in the first quarter of 2021, and profit was above analysts’ expectations. However, lower user growth and Twitter’s second-quarter outlook disappointed investors, with analysts slashing target prices for the company’s stock.
Twitter (TWTR) shares fell after the company reported its results for the first three months of this year.
Twitter’s report comes after rivals Facebook (FB), Pinterest (PINS) and Snap (SNAP) have already summed up the results, which turned out to be mixed. While Facebook stocks reacted to the report with a rise to new all-time highs, Pinterest and Snap declined despite fairly strong performances.
Twitter posted earnings per share of $ 0.16, beating analysts’ expectations of $ 0.14.
Quarterly profit rose to $ 68 million from a loss of $ 8.4 million a year ago.
Twitter’s revenues, derived primarily from advertising, grew 28% year-over-year to $ 1.04 billion, above the analyst average of $ 1.03 billion. link.
Twitter said it added 7 million daily monetized users in the first quarter – an audience that grew to 199 million, but below analysts’ expectations of 200 million.
The company said its customer base grew 20% year-over-year, while overall ad engagement grew 11% over the same period.
Twitter CFO Ned Segal said the first quarter was seasonally weaker than the holiday fourth quarter, but noted “brand advertising growth in March.”
Twitter said it expects revenues in the current second quarter to range from $ 980 million to $ 1.08 billion, with an average of $ 1.03 billion below Wall Street’s expected $ 1.06 billion.
Commenting on the report, executives said it was too early to assess the impact of Apple’s privacy settings changes in iOS 14.5 on Twitter ad targeting.
Due to the lower user base and weaker Twitter forecasts for the second quarter, experts from four investment companies lowered their target prices for the company’s shares, but kept their ratings, seeing the long-term potential for the company, among them: Oppenheimer analyst Jason Helfstein and John Egbert from Stifel.