Twitter warns of weaker user growth after record sales
Twitter has warned of slower user growth following the boom driven by the coronavirus pandemic and political developments. The U.S. microblogging service announced on Tuesday that growth would not be as strong in the coming quarters.
In the fourth quarter, which also saw the US presidential election, the number of monthly active users rose by 26% to 192 million. This was less than analysts had expected. However, flourishing advertising revenue, also thanks to new ad formats, ensured a 28% increase in turnover to an unprecedented 1.29 billion dollars. And profits increased by a good three percent to 222 million dollars.
Trump as a driver of business
According to Twitter, product improvements and global discussions about the coronavirus pandemic and the US elections have led to new registrations, while changes to combat misinformation have had little negative impact. Twitter has been in the headlines time and again over the past four years, particularly due to the now outgoing president and constant tweeter Donald Trump - most recently after his lifelong ban.
However, to keep users happy, Twitter is offering a number of innovations such as Fleets - short messages that disappear again - and is also testing an audio app that is 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. However, revenues are expected to grow faster than costs, the company added. Sales of 940 million to 1.04 billion dollars are expected for the current quarter. (SDA)
