Feb 16, 2021 (IAM Newswire via COMTEX) -- In its first earnings report after banning the former US president, Twitter /zigman2/quotes/203180645/composite TWTR -2.22% failed to meet Wall Street's user growth expectations. However, it exceeded revenue and earnings expectations just like its peers Facebook /zigman2/quotes/205064656/composite FB -0.53% , Snap /zigman2/quotes/205087158/composite SNAP -4.13% and Pinterest /zigman2/quotes/211319641/composite PINS -9.72% , causing its stock to go up slightly in after-hours trading last Tuesday.
Adjusted earnings per share amounted to 38 cents, exceeding expectations of 31 cents forecasted by Refinitiv. Revenue of $1.29 billion also exceeded $1.19 billion forecasted by Refinitiv. Monetizable daily active users amounted to 192 million, missing expectations of 193.5 million, according to StreetAccount, but up 72% from the year-ago period.
Revenue is expected to grow faster than expenses in 2021, under the assumption that the pandemic situation will continue improving. Unlike Facebook /zigman2/quotes/205064656/composite FB -0.53% that openly labeled Apple's /zigman2/quotes/202934861/composite AAPL -0.25% upcoming privacy changes to iOS 14 as a serious threat, Twitter expects a "modest impact". However, the company warned it expects headcount growth of more than 20% this year with overall expenses increasing more than 25%. Twitter guided that it is expecting revenue between $940 million and $1.04 billion in the first quarter, whereas analysts were expecting guidance of $965 million, according to Refinitiv.
The increase in average absolute mDAU through the end of January was above the average of the last four years, possibly having to do with Twitter's decision to permanently suspend the account of former President Donald Trump. Twitter finally took a stand and took action to curb hate speech, call for violence and protect its users from misinformation.
Twitter ad revenue grew 31% YoY to $1.15 billion with total ad engagement growing 35% over the same period. Last Monday, Twitter announced the launch of its rebuilt MAP product that should increase the platform's addressable market and diversify its customer base.
Twitter is obviously much larger than any one topic or any one account, as it performs a global service helping its users stay informed throughout this unprecedented health and global crisis. Twitter is showing it is not just dependent upon just news and politics as on January 26 [th] , the company announced it purchased Revue, a startup service that allows writers and publishers to post editorial newsletters.
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