Twitter today reported strong revenue growth for the third quarter of 2020, while monetizable users also grew year-over-year, although they lagged behind estimates. The social networking giant announced its latest financial and user metrics this afternoon, breaking a long-standing tradition where Twitter typically released its financial data before the market opened.
The day after Senate CEO Jack Dorsey was harassed by the U.S. Senate for moderating content through social media companies, Twitter announced $ 936 million in revenue – a 14% increase over the previous year ($ 1,424 million QoQ increased 37% from $ 686 million for the second quarter of 2020. The company added that quarterly net income rose 22% year over year to just under $ 29 million down.
In the earnings press release, Twitter’s CFO Ned Segal noted that the increase in revenue was largely due to advertisers increasing their spending on events like live sports after holding back in previous quarters due to the global pandemic .
As in the previous quarter, due to the impact of COVID-19, Twitter hadn’t given a revenue forecast ahead of its third quarter 2020 financial data, but analysts had set Twitter’s revenue for the quarter at around $ 775 million, while mDAUs were expected to hit more than 196 million.
In short, Twitter outperformed sales but disappointed user growth.
Twitter’s shares are roughly double what it was in March, hitting a five-year high of more than $ 52 this week. However, due to unexpectedly low user growth, stocks fell as much as 12% after the close of trading.
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